Time for world to pivot away from the US economy – Asia Times
Donald Trump’s win in the 2024 vote and his danger to impose taxes on all American imports highlight a significant issue for the worldwide market.
The US has won more Nobel rewards in the last five years than any other nation combined and has spent more on research and development than any other nation combined. The world is envious of its innovations and economical accomplishments. However, the rest of the world must exert every effort to avoid becoming very dependant on it.
And if Harris had prevailed, there would n’t have been much of a change.
Donald Trump’s” America first” strategy has actually been republican. The US has been largely inward-looking ever since the power independence policy of past president Barack Obama, putting an end to industrial job outsourcing.
Trump’s first policy was to take higher prices for US consumers, which would have meant imposing high tariffs on nearly every investing partner, to protect regional producers.
For example, Trump’s 2018 levies on washing machines from all over the world mean US consumers have been paying 12 % more for these items.
President Joe Biden– in certainly a more polite way– then increased some of the Trump tariffs: up to 100 % on electric vehicles, 50 % on solar cells and 25 % on batteries from China. This was a clear decision to slow down the energy move in a climate disaster to safeguard US production.
Biden launched a payment competition while agreeing to a tariff truce with Europe, which may have sparked a potentially yet worse conflict.
For example, the US Inflation Reduction Act provides$ 369 billion in incentives for sectors like renewable energy and electric cars. Additionally, the Chips Act authorized$ 52 billion to support the production of computer and semiconductor chips.
China, Europe and the rest of the world
Although this US commercial plan may have been biased toward the outside, there are still serious implications for the rest of the world. China, after years of largely export-based growth, may now deal with huge problems of business overcapacity.
The nation is now attempting to expand its trading partners and encourage more private usage.
Europe, despite a very small budget requirement, spends a lot of money in the rebate competition. Germany, a country facing sluggish growth and big doubts about its , industrial model, is committed to matching US subsidies, offering, for instance,  , €900 million  , ($ 950 million ) to Swedish battery makers Northvolt to continue producing in the country.
All those grants are causing a negative impact to the global business and could have easily funded urgent needs like solar panel and battery-powered electricity across the entire African continent. Meanwhile, China has replaced the US and Europe as the largest buyer in Africa, following its own interest for organic sources.
Ideas may be fixed by the approaching Trump mission.
One may say that if the Biden administration had known more about the effects of an invasion and had given Kyiv modern arms before the war, the full-scale invasion of Ukraine, along with the thousands of deaths that ensuing, and the energy crisis that ensued, could have been avoided.
But the responsible is mostly on Europe. Trump had a right to credit where it’s expected for his first-term warning about Germany’s proper issue of becoming too dependent on Russian gas.
By putting an end to China’s personal tax battle on Chinese technology like solar panels and electric cars, there is a clear path ahead.
Alternatively of importing record quantities of wet oil from the US, Europe would reestablish some of its original power by producing more of its own fresh energy. China could use its considerable liquidity on Russia to put an end to Ukraine’s war, and it could also learn a few things from working with Chinese companies.
The European Union may put more effort into achieving its goals, which is to sign trade agreements and use them to decrease global carbon emissions. Never just China and Europe are the subjects. After years of , ongoing improvement , in all main dimensions of human existence, the world is moving downward.
The number of people facing starvation is increasing, taking us back to the rates of 2008-9. War is raging in Gaza, Sudan, Myanmar, Syria, and presently Lebanon. Since 2010, there have n’t been as many civilian casualties in the world.
For better or worse, it is doubtful that a Trump administration may change the way of lower US meddling. Additionally, it is unlikely to be a major force in the fight against climate change, trade liberalization, or tranquility.
America wo n’t help the world because it is alone.
What will happen to the US is unknown. Trump’s transfer may be largely a continuation of his previous ten years. The US economy will become less important as a result of expensive tariffs or the destruction of the organizations that contributed to its economic powerhouse status.
Americans have chosen this option, and the rest of the world must accept it. The only thing the universe can do in the interim is to learn how to collaborate more effectively without becoming overly dependent on one another.
Renaud Foucart is mature teacher in finance, Lancaster University Management School, Lancaster University
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