Introduction
With the United States boasting the most significant economy globally, its government’s actions are causing fear, hatred, alertness, and retaliation among nations. Renowned economist Desmond Lachman highlights the concerning state of affairs under President Donald Trump’s administration.
The Erratic U.S. Government and Its Global Consequences
Lachman, with extensive experience in international institutions, states: “Under President Donald Trump’s erratic leadership, the United States now exhibits all the symptoms of high import tariffs, fiscal deficit, oligarchy, and blatant corruption. Moreover, the repercussions cannot be confined to the U.S., and no multilateral rescue or structural adjustment plan can mitigate these damages.”
Trade Tensions with China
The power struggle between the U.S. and China has escalated, with both nations rallying their allies. In response to U.S. actions, China has imposed high tariffs on U.S. imports, halted exports of critical minerals essential for military and technological industries, and potentially may take military action—currently contained to Taiwan, a U.S. ally and significant provider of technological components. China is the second-largest holder of U.S. debt, after Japan.
Erosion of Economic Rationality
Trump’s trade war has undermined fundamental economic rationality principles, such as international norms enforced by multilateral institutions, industrial complementarities between countries’ businesses in supply chains, and macroeconomic stability.
Domestic Impact: Trump’s Destructive Policies
Luc Triangle, General Secretary of the International Trade Union Confederation representing 330 labor organizations, explains: “Through his attacks on workers—from dismantling unions to cutting public services and laying off tens of thousands of unionized workers in the U.S.—Donald Trump has demonstrated that his intention is not to create more jobs but rather promote an ultra-right program for the benefit of millionaires.”
Mexico’s Challenges Amidst the Global Context
Examples of Mexico’s Situation:
- Tariffs on automobiles, steel, aluminum, and tomatoes.
- The U.S. will seek to impose its will in the renegotiation of the T-MEC, linking trade with migration, security, drug trafficking, and water issues.
- Trump’s preference for U.S. investment to stay domestically will reduce investments flowing into Mexico.
- Lower incomes in the U.S. population due to rising internal prices will negatively impact American tourism to Mexico.
- Reduced exports to the U.S. and lower dollar remittances from Mexican workers to their families.
A Word from Clarice Lispector
Clarice Lispector, the eminent Brazilian author, says: “Whoever has the truth, let them come and speak. We will listen to the afflicted.”
Key Questions and Answers
- Q: What concerns do experts have about the U.S. economy under Trump? A: Experts like Desmond Lachman highlight high import tariffs, fiscal deficit, oligarchy, and corruption as signs of an erratic U.S. economy under Trump’s leadership.
- Q: How is China responding to the U.S.-China trade tensions? A: China has imposed tariffs on U.S. imports, halted critical mineral exports, and potentially may take military action, currently contained to Taiwan.
- Q: What are the domestic consequences of Trump’s policies? A: Trump’s attacks on workers have led to dismantling unions, cutting public services, and laying off unionized workers, indicating an ultra-right program for millionaires.
- Q: How is Mexico affected by the current global context? A: Mexico faces tariffs on various goods, potential trade disputes linking T-MEC renegotiation to migration and security issues, reduced investments, and lower tourism and exports to the U.S.
