As the election of 2015 had redefined the fate and perception of the superpower that is the United States of America, the election of 2020 is touted to make even bigger waves in the global scenario. This is owed to the deep dark abyss that is the Electoral College, as well as Donald Trump’s interspersed measures from time to time to carry on his incumbency. The latest such measure is Trump’s attempt to stitch a narrative where he claims to win the trade war while simultaneously stop it- all in the classic Trump style.
There have been talks of reinstation of tariffs on international goods from foreign countries, mostly in retaliation to digital tariffs imposed by these countries, an industry mostly monopolised by the American corporations. At this moment in time, Trump’s plan may be to intensify the trade war and to, as Robert Triest, professor, and chair of Northeastern University’s economics department says, “juice the economy by ending it,” a strategic move ahead of the 2020 election, and one that Triest says is dangerous for both the health of the economy and the welfare of the country. Although revenue (not being more than 2%) generated from these inflated tariffs does not seem to be the driving factor- it is more about the political leverage as Trump faces down the barrel of re-election in less than a year. This move will place a clear emphasis on his fiscal agility as a “saviour of a crashing economy” and his “commitment” to saving the nation from a debilitating trade war.
It seems Trump is not showing any remorse and plans to launch himself head-on into this struggle for all sorts of points that he can get. It is unclear if the foreign countries will retaliate or simply turn a blind eye to these changes. Either way, Triest has encompassed the situation in one simple sentence, “If they don’t move to the other side of the road, he may just crash the car.”
Sharanya Mathur