Portsmouth, Great Britain – October 28: Vung Tau Express container sews, loaded with shipping containers near the English coast on October 28, 2024 in Portsmouth, England.
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The tariffs proposed by US President Donald Trump are not simply symbolic, but they are penalty and will “cost a job” in the USA, according to Frank Lavin, a former US ambassador in Singapore.
Talking to CNBC “Asia street signs“Lavin said that” some bad news is waiting in the near future “, adding that the tariffs will also harm the automotive industry in the USA
“This obliges other countries to answer. So we will see a deterioration and I think that the worst of all, from the point of view of Mr. Trump, whether we will see some inflationary pressure, “said Lavin.
Trump On on Monday the implementation of executive orders was signed 25% tariffs for the import of steel and aluminum to the USA
Asked if Trump could use tariffs and threats of tariffs as a tender chip, Lavin explained that this could be seen as such if the tariffs were directed to Canada or Mexico to get a response to such issues as border safety.
“But when you talk about the global tariff for steel and aluminum and a tariff to China, you will not see a quick answer and quick resolution of these matters,” he said.
In addition, when Trump has a “mutual” position on tariffs, Lavin said that the world would see trade deterioration, which will make it more difficult for other countries with the answer. “So he goes beyond the usual signaling or simply establishing tariffs as a negotiating system.”
“If they burden us, we'll burden them. If they are 25 (percent), we are 25 years old, if they are 10, we are 10, and if they are much higher than 25, then we are there – Trump said on Monday.
While the US economy is currently “in poor condition”, Lavin said that tariffs add inefficient the economy and exert negative pressure on it. This will also increase inflationary pressure, which can lead to the reserve of the Federal USA at rates.
“Trump was angry at the Fed Fed last time there was no alleviation. Well, next time there will be no gentle if he keeps these tariffs on the spot, “he said.