Financial analyst claims Trump’s ‘sledgehammer’ method may cause trade conflicts
(MENAFN) Financial analyst Henry Johnston has compared US President Donald Trump's approach to political and economic issues to using a sledgehammer on problems that require a more nuanced solution. Speaking to RT, Johnston warned that Trump’s aggressive tariff strategy, announced under his ‘Liberation Day’ plan, could backfire and lead to trade wars.
Johnston drew parallels between Trump’s handling of the Ukraine conflict and his economic policies, arguing that both attempts to address deep-rooted problems with rapid, unilateral actions. He suggested that Trump's tariff plan would not resolve long-standing economic issues, which have persisted for decades, and criticized the strategy for not addressing the root causes of these problems.
Trump’s recent tariff announcement, which targets a wide range of trade partners, involves reciprocal tariffs that would charge countries about half of what they charge the US. Johnston pointed out that there is a perception in the White House that other nations take advantage of the US market, but he questioned the fairness of claiming that the US has been exploited, given the country's role in the global economic system.
The tariff plan has sparked strong reactions from international partners. EU Commission President Ursula von der Leyen pledged a robust response, while Chinese Foreign Minister Wang Yi warned of a “counterattack” if the US continues its tactics. Johnston believes that the EU will view this move as hostile, and he anticipates the potential for trade wars even among US allies.
Since returning to office, Trump has imposed a variety of tariffs on imports, including duties on Chinese goods, EU products, and steel, aluminum, and auto parts, while accusing the EU of unfair trade practices.
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