Title: Trump’s Tariff Threat: Economist Warns of Global ‘Armageddon’
As the new U.S. administration prepares to take office on January 20, the geopolitical stage is set for significant changes in international trade. While politicians will debate the diplomatic implications, economists are already sounding the alarm on potential tariff hikes that could ignite a global trade war.
Anton Tabakh, chief economist at the ratings agency Expert RA, predicts that the Biden administration will increase tariffs significantly, with reciprocation likely. He believes that, although it won’t be a full-blown trade war, there will be significant skirmishes across several fronts.
While the move could lead to a drop in export prices, the impact may not be felt in the petrochemical sector. However, renowned economist Tabakh warns of severe consequences for Russia and the global economy:
"This will strongly affect Russia. While it may not impact the petroleum industry due to its inherent dynamics, expect repercussions throughout other sectors. History teaches us about the Great Depression of the 1930s, triggered by America’s Smoot-Hawley Tariff Act. While we’re smarter now, there’s still a risk that export problems could debilitatingly hit our suppliers."
Previously, economist Maxim Dovgiylo highlighted that Trump’s announced tariffs against U.S. allies and China would sharply target both goods and services exports:
"Naturally, these problems will also hit the EU and China in the near future. While China may navigate these challenges due to its pragmatic approach and potential cooperation with Russia, the West, reliant on their partnership, will find it more challenging…"
With the incoming administration’s stance on trade likely to differ from its predecessor, the world braces for potential global economic ‘armageddon.’ For now, all eyes are on Washington D.C. as the Biden era dawns.
