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Trump: How systematic cultivation of instability can “backfire”

Trump's "America First" and the inclusion of his allies in the same list of enemies, creates unexpected alliances - What the talks between Europe and China on electric vehicles and the first contacts between Asian countries mean

Giannis Xaramidis April 11 08:33

 

With tariffs on China – only on the part of Donald Trump – currently at 145% and their Chinese counterparts at over 80%, the only given is that the economic war between the world’s two most powerful economic poles has begun. The fallout from the sanctions has yet to become immediately visible within the two economies, but what is clear is the US markets are not just rocking but falling even on a day when the 90-day “freeze” message stability from the US President gave a positive bias to the opening. Markets that do not understand diplomacy and leverage seem to be more embracing the condition that we are currently in an environment where no predictions can be made and inevitably register losses that are appropriate to that very condition.

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If we leave aside the analyses that, in the short and long term, mean losses for both sides and deal with the “third parties” of the conflict, we will see that the US has lost a key advantage – one that they will hardly be able to regain… Late yesterday afternoon, the German Handelsblatt, citing sources from both the European Union and Beijing, reported that Brussels and Beijing have already started discussions – at a very early stage – in order to have a common line on electric vehicles. Based on European sources, Brussels is currently willing to discuss even the zeroing of the tariff that Europe has imposed on electric vehicles that China mass-produces and to boost their imports into the European market. Chinese sources seem to be talking about a broader plan in which Europe and China will invest significant capital in the coming years in the co-production of electric vehicles on European soil. Trump’s tariffs on the entire world and the economic war that the American President has officially declared against China, with tariffs currently at 145%, have opened up discussions with Beijing on a global level. Indicative of the situation and the new data that American policy brings is the undeniable news that China, South Korea and Japan are also at a first but not “rough” level of economic and defense discussions.

Even if the European or Asian plan does not move forward, the contacts will remain… No one today can have or take for granted that tomorrow will be better or, to be precise, more stable. Donald Trump is liked and the truth is that he stands out in the midst of chaos. He has no inhibitions about creating such when it does not exist or does not arise from somewhere, and that is exactly what he has done today, involving literally everyone. The President of the United States clearly understands the consequences of his actions and words and seems to be moving in complete harmony with a plan… but a plan that no one, not even those closest to him, knows about. A plan that creates noise and conspiracy theories much faster than it creates political or economic faits accomplis.

Where we will be led remains “blurry” and unknown today, but it is clear and completely visible to everyone that what will remain is uncertainty. This uncertainty will weigh on the United States for years. The issue is not only economic but also political… The United States, like every powerful country in the West, is not judged piecemeal and only by the people who represent it, but mainly by the duration and consistency with which they choose to move at all levels. Trump has chosen to put forward “America First” without discussing the next steps. Allies have been put on the same list as enemies, and what is being systematically “sold” and unfortunately cultivated is the seed of instability, a seed that if it “blooms” as a weed will affect everything near or far from Washington.

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