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Portsmouth, the United Kingdom – October 28: The container ship Vung Tau Express Sails loaded with shipping containers near the English coast on October 28, 2024 in Portsmouth, England.
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The tariffs proposed by the president of the United States, Donald Trump, are not simply symbolic, but are punitive and “will cost jobs” in the United States, according to Frank Lavin, former United States ambassador to Singapore.
Talking to CNBC “Street Sigs Asia“Lavin said that” we are waiting for a little bad news in the short term, “he added that tariffs will also harm the automotive industry in the US. UU.
“It will force other countries to respond. So we will see the deterioration, and I think that the worst of all, from the point of view of Mr. Trump, is that we are going to see some inflationary pressure as well.” Lavin said.
Trump orn Monday signed executive orders implementing 25% tariffs on steel and aluminum imports in the US.
When asked if Trump could use tariffs and the threat of tariffs as a negotiation chip, Lavin explained that it could be seen as such, if the tariffs were heading to Canada or Mexico to obtain an answer in problems such as border security.
“But when you are talking about a global tariff about steel and aluminum and a tariff on China, you will not see a quick response and a quick resolution of these issues,” he said.
In addition, with Trump promising a “reciprocal” position on tariffs, Lavin said the world will see a deterioration in trade, and this will make other countries respond. “So it has gone beyond simply pointing or simply establishing rates such as a negotiation chip.”
“If they charge us, we charge them. If they are at 25 (percent), we are at 25, if they are at 10, we are at 10 years, and if they are much higher than 25, then it is where we are where we are In also, “Trump said Monday.
While the economy of the United States currently “is not in poor condition,” Lavin said the tariffs will add inefficiencies to the economy and exert negative pressure on it. The inflationary pressure will also increase, which could lead to the United States Federal Reserve to stop in tariff cuts.
“Trump was angry with the US. Uu. Fed last time when there was no facilitation. Well, there will not be a facility next time, if he keeps these rates in his place,” he said.
