The article discusses the potentially catastrophic economic consequences of President Donald Trump's trade war, particularly its impact on the global economic system. It highlights the far-reaching effects, stating that even small export economies will face significant financial losses, running into billions. The global nature of the tariffs, impacting nearly all countries, indicates that these measures are not temporary but represent a new, protectionist policy.
The author criticizes Trump's vision of a return to an autarkic-nationalist economy as unrealistic and disconnected from the interconnected global economy. The article points out that the US, ironically, has greatly benefitted from the very global system Trump seeks to dismantle. The brunt of the economic consequences will likely be felt in the US itself, especially by vulnerable populations.
The article explores whether an economic recession would deter Trump from his current course, deeming it unlikely. Trump might instead double down on hardline domestic policies as a distraction. The article offers a more optimistic outlook suggesting that Europe and other like-minded nations can build a coalition to counter Trump's protectionism and mitigate the damage to global free trade. It also emphasizes the need to acknowledge and address the negative consequences of globalization, offering an opportunity for reform and a more balanced approach to international trade.