The approach of Trump administration in balancing trade deficit of United States with the policy of high tariffs is akin to cutting off the nose to spite the face. Global economy is being adversely affected and creating havoc for the American producers, workers and consumers.
With the kick of trade war with China irrational war has been scaled from countries to continents as well as from products to global supply chains. A media report estimates mutual trade restrictions can cross $1 tn mark and this is something more than 50 person of the USâ€™s trade with Canada, Mexico, China, the EU and other major partners.
Some say the hardest hit economy will be that of the US and EU suggests 25 percent more import tariff on foreign automobiles will bear negative impact on the GDP to the tune of $13-14 billion and industries like meat producers and soyobean farmers
The negative impact could be further deteriorating as domestic companies would either reduce the production or shift overseas.
United States is a production hub for global auto majors and is likely to lose investments. It is a more than $75 bn industry and supporting directly 130,000 American jobs.
Meanwhile, Harley-Davidson has announced moving its production to one of its plants overseas. Trump was not happy with the step. Similarly, Tesla and Ford Motors too have said doing the same with their production facility in the US.