The president of the United States, Donald Trumpdecided to increase tariffs To China, Mexico and Canada, a measure that generated concern and caused a Strong drop in markets. The economist Juan Carlos de Pablo, very close to Javier Mileireferred to this decision of the Republican leader and was categorical regarding the protectionist barriers implemented. “Trump is a danger.”
On the impact of the rise of tariffs, by Paul said that the president “He altered the world economy by manipulating and using tariffs in a very particular way. “
Even so, the economist emphasized the seriousness of this protectionist policy. “If a product did not pay any tariff and suddenly it applies 25%, that percentage above zero remains zero. But 25 percentage points imply that something that before had no additional cost must now pay 25%, ”he explained in dialogue with TN.
In this context, while some advance in negotiations for a free trade agreement with the United States is expected, President Javier Milei maintains a close relationship with Trump. This link did not go unnoticed by Pablo, who, although he did not question it, He did give a recommendation to the libertarian president.
“The key to all this is to maintain a personal relationship, but avoid depending on it,” said Paul. He added: “In 2018, Macri had to resort to that bond and was useful. However, when there is an economic program based on fiscal balance, negotiation with the IMF can be carried out without Trump’s intervention. “
Why Donald Trump’s increase in tariffs generates concern, according to Pablo
The tariff rise entered into force on Tuesday, establishing taxes of 25% for Mexico and Canada, in addition to an additional 10% tax on imports from China.
In this context, The economist warned that the measure generates “fear” in the global economy, since it comes from the United States, one of the main powers, and not from a country with less influence in international trade.
“In Mexico there is a plant that manufactures washers and sells them to a car producer in Detroit. If a 25%tariff is suddenly applied, an immediate problem is generated. Suddenly, they begin to scarce washers or nuts. Will they open a factory in Boston or Chicago to replace them? No, because Trump could eliminate the tariff at any time,” explained Paul. He added: “This generates uncertainty, affects inflation and puts at risk an economic recovery that had been very strong.”
Regarding the impact of a possible commercial war, which could slow down economic growth and press the global inflation, the economist recalled the consequences that a similar situation had in Argentina during the 1930s.
“Each country tried to solve its economic problems by throwing garbage over the neighbor’s fence“He recalled.
De Pablo reiterated his criticisms of the protectionist measures of the United States: “They are playing Russian roulette. The problem is that the use of tariffs as a commercial policy tool generates uncertainty. If I were the president of an insignificant country, we would laugh, but he is the president of the United States. “
Source: Ambito
