Biznes Fakty
The Donald Trump Effect. Economist Prof. Marian Noga comments
– Every tariff conflict has ended in defeat for those who initiated it. I am unsure what US President Donald Trump expected – stated Professor Marian Noga, a former member of the Monetary Policy Council, during his appearance on „Tak jest” on TVN24.
– Any advantages gained by the nations that started the tariff conflict were fleeting and lasted no more than six months when the positive impacts were felt – the economist pointed out.
Commentary on Donald Trump’s Tariffs
– Historical evidence indicates that beyond this six-month window of potential gains, losses outweighed the initial benefits – elaborated the guest of the „Tak jest” show.
He believes that Trump’s policies are self-defeating. – In the worst-case scenario, this will lead to a significant economic downturn – remarked Prof. Noga.
Is there a possibility that Trump will succeed in relocating production to the US?
– While the interest rates on loans, or the cost of borrowing, are among the lowest globally in the US, the cost of labor is by far the highest worldwide. Thus, there is little to no chance that American production can replace Chinese products, so to speak. This certainly serves as a prime example – responded the former MPC member.
– To be blunt: if, for instance, over six trillion dollars exited the New York Stock Exchange on Thursday and Friday, with the stock market’s total value being 28 trillion dollars, which is a quarter of the capitalization of the American stock market, then this signals very serious complications and shifts within the global economy – assessed the guest on TVN24.
Since Donald Trump took office, $11 trillion has vanished from the US capital markets, with more than half of that amount disappearing recently.
– If you consider an average American household that consumes a certain quantity of goods and services annually, today, to maintain the same level of consumption as last year, they must spend an additional four thousand dollars. So who stands to benefit from this tariff war? The American people, who will face this extra burden – the economist posed a rhetorical question.
He further stated: – This billionaire, American president is asking his citizens to pay for his whimsical economic ideas. Such theories have never been substantiated or witnessed by anyone.
Prof. Noga: this smells of major complications TVN24Trump Tariffs and Retaliatory Tariffs
A ten percent tariff on nearly all products from almost every nation around the globe took effect on Saturday, marking the first in a series of tariffs Trump announced on Wednesday.
The newly implemented tariffs will not apply to Canada and Mexico, where President Trump has already enforced a 25 percent tax on about half of imports. Additionally exempt from these tariffs are steel, aluminum, automobiles, and auto parts, which are subject to separate 25 percent tariffs, along with copper, pharmaceuticals, semiconductors, and timber (which will face additional taxes in the future), as well as energy carriers and minerals not available in the United States.
As of April 9, further taxes are set to be applied to goods from 57 countries that maintain a trade surplus with the United States.
This group includes China and the European Union, which will face additional tariffs of 34% and 20%, respectively, along with Japan (24%), South Korea (25%), India (26%), Vietnam (46%), and Taiwan (32%).
On Friday, China declared retaliatory tariffs of 34 percent on all U.S. imports in response to Washington’s announcement of „reciprocal tariffs” on Chinese goods. This decision, sanctioned by the State Council, will take effect on April 10.
