Ed Yardeni’s take on Trump’s “Protectionism” and Global Growth

by Laura Ehrenberg-Chesler on February 7, 2017

in Foreign Markets,free trade,United States of America

“Trump’s protectionist sentiments and pledge to renegotiate trade agreements on a bilateral, rather than a multilateral, basis is the immediate uncertainty confronting America’s biggest trade partners, i.e., all those countries that have enjoyed a wide open market for their exports in the US. They won’t have much choice but to negotiate the best deal they can get from the Trump administration, which isn’t likely to be as good as what they have now.

They are also likely to respond by seeking to do more business with one another and to develop more domestic demand to stimulate their economic growth, as exports to the US may be a less dependable source of growth going forward. If so, such responses to America First by other countries could have big positive consequences for the rest of the world. The Second and Third Worlds could finally break their reliance on the US and contribute more to global growth.”

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