The Bunker – News without the nonsense Trump’s tariff tantrum – “Monumentally bruising to the global economy”
Apr 4, 2025
Dmitry Grozoubinski, Director of ExplainTrade and author of Why Politicians Lie About Trade, dives deep into the chaos of Trump’s tariff policies. He explains how these measures could ignite a global trade war, disrupting established norms and relationships. Grozoubinski highlights misconceptions around trade deficits and the ominous unpredictability of tariff decisions, comparing the situation to a chaotic game show where serious economic stakes are at risk. His insights uncover the dangerous implications on the global economy sparked by misguided policies.
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Trump's Tariff Plan
- Trump imposed a baseline 10% tariff on almost everything.
- A "reciprocal tariff" was added based on perceived unfairness to US trade, calculated using a questionable formula.
Global Impact of Tariffs
- The tariffs on China could reach 54%, with the EU at 20% and the UK at 10%.
- This move is considered highly damaging to the global economy and could trigger retaliation.
Impact on the UK
- While the UK's 10% tariff is lower than the EU's 20%, its largest export (cars) faces a 25% tariff.
- The UK's service-based economy will also suffer from global economic instability.