Elon Musk

Economics

Economic tensions to intensify worldwide

It is natural for people to be curious about what may happen in the world economy and trade in the coming year. Particularly, with Donald Trump being re-elected as the President of the United States, there is speculation about whether the situation will worsen. The question being raised is whether Trump will launch a full-scale trade war. According to a report by the Financial Times, there is a possibility of a full-scale trade war, but it is not guaranteed. The FT refers to a full-scale trade war as a scenario where, by the end of the year, the United States will impose at least a 10 per cent tariff on all imported goods. Trump has threatened to impose up to a 25 per cent tariff on goods from Canada and Mexico, excluding China. These two countries account for 30 per cent of US imports. They, too, will continue to exert pressure on Trump in various ways. However, FT suggests that due to the additional tariffs, Trump is likely to continue the tariff battle. Hence, they do not believe that these tariffs will be withdrawn by the end of the year.