Europe hopelessly slow
It is therefore Trump who must backpedal and untangle himself from his own tariff web.
He will likely play at negotiations for a week and then back out with a faux victory raised fist – while everyone else sees the drooping tail.
We also realize that we may be witnessing a historic shift in leadership roles in the global economy. China had the largest economy until the industrialization of the 1820s. It wasn’t until 1890 that the USA surpassed China.
The fact that China is not a democracy and does not value human rights is discouraging. But a taunting, hypocritical, and out-of-touch Trump is evidently economically directly dangerous. He has excellently proven this in recent weeks.
Meanwhile, Europe is hopelessly slow and lagging behind. A number of EU ministers met yesterday. They were still discussing the first wave of tariffs on steel and aluminum – as if the latest wave of tariffs of 20% had not reached them.
The question is when Europe’s blue gaze will be replaced. Perhaps China’s tough stance will now set the tone.
Trump’s rapid shifts in opinions, facts, and vulgar attacks worked in the real estate world in the 1980s. That was when he also started boasting about tariffs and trade deficits. But in world politics, there are longer and more complex connections. Add to that the fact that the USA is divided and facing a long-term, increasingly unified and smart China. Against a Trump – not in an ivory tower, but ensnared in a homemade tariff mess.
Claes Hemberg
Independent Economist
This is a column from an independent columnist. Analysis and opinions are those of the writer.