Reuters Econ World
The Transatlantic Economy
Dec 18, 2024
Ulrike Malmendier, a Professor of Economics and Finance at UC Berkeley and member of the German Council of Economic Experts, dives into the impending economic challenges posed by President-elect Trump’s tariff plans. She discusses how Europe is bracing for a potential trade shake-up, highlighting sluggish consumer spending and the need for unified insolvency laws to enhance investment. The toy industry’s shifts amidst these tariffs reveal adaptive strategies, emphasizing the importance of flexible fiscal rules to stimulate sustained growth.
25:05
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Quick takeaways
- Trump's proposed tariffs threaten U.S.-Europe economic relations, prompting Europe to explore strategies for resilience and unity against these challenges.
- The stark growth disparity between the U.S. and Europe underscores the necessity for innovative economic strategies and harmonized regulations to boost competitiveness.
Deep dives
Trump's Economic Promises and Global Impact
Donald Trump plans to revitalize the U.S. economy by focusing on reshoring, controlling immigration, and implementing tariffs, which he believes will boost job creation and wealth generation. This approach, however, poses significant risks for global trade, particularly affecting the European Union, whose economies are intertwined with the U.S. market. Trump's notion of welcoming German companies to build domestically reflects an intention to challenge global competitors, especially China, leading to potential trade wars. As the EU braces for the consequences of these economic policies, concerns arise regarding inflation, growth, and job stability within transatlantic relations.
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