President Trump has initiated what may become a trade war with China, and Business Insider has an interesting article on its website about how Trump’s recent world economic policy moves are being criticized by several major world trade organizations. The article details how the International Monetary Fund, the World Trade Organization and the Federal Reserve feel that a trade war may not be in the best interests of the global community generally and even the United States specifically.
Essentially, the groups are indicating that, despite Trump’s assurances to Americans via Twitter that trade wars are easy to win, this is rarely the case and that he should be very careful about what he is doing. Trump’s initial plan is to impose tariffs on imported Chinese steel and aluminum. While economists feel that these specific tariffs will have little effect, they could lead to more tariffs as a trade war escalates and this will hurt everyone.
In any event, any major world economic policy change by the Trump administration is likely to have a vast ripple effect, and, due to the complexity of global economics, it’s very difficult to predict exactly what it will be. However, Trump has shown in the past that he’s willing act on his own instincts even when they run contrary to the advice of experts, so he may simply ignore what these economic groups are saying and continue to take the United States down the road of protectionism.