Trump's Trade Wars Have Officially Begun

This was always going to happen. Trump has had a very firm clear when it comes to tariffs and their use as a tool to further the interests of the United States.

For it to happen quite so quickly though? Well that most people will have to disagree on. It has barely been 2 weeks since Trump came into office, and we’ve already had 2 trade wars start.

Perhaps all those executive orders he signed on his first day in office really wasn’t an opportunity for him to give back to his supporters, but simply an indication that Trump was fully intending on getting started as quickly as possible and nothing was going to stop him.

Columbia’s Spat That Led To Nothing

For those who aren’t aware, the first of these 2 trade wars happened over the last week, as Trump sharply accelerated America’s deportation of illegal immigrants.

Again, this was fully expected and did not go unreported in any sense of the word.

Where this came to a head however was when the US attempted to deport a few hundred Columbian illegal immigrants back to Columbia.

Trump in his attempt to deport as many of these illegal immigrants as quickly as possible authorised Military transport planes to be used, and 2 of them were sent to Columbia.

Queue a rather embarrassing melt-down from the Columbian President, a swift exchange of tariffs and visa revocations and Columbia swiftly backed down and accepted the illegal immigrants…

I made a full breakdown of the situation for you all here on my YouTube!

Trump’s Unleashed Tariffs on China, Canada & Mexico

A few days later and Trump finalises his initial hits against America’s three largest trading partners China, Canada and Mexico.

Ranging from 10% to 25% and impacting all sorts of different goods and services being imported into the US this is a clear attempt by Trump to prioritise domestic industry and reduce America’s imports.

Of course Canada and Mexico has already hit back with a series of tariffs against the United States, and China has stated they will be announcing their retaliatory tariffs swiftly too.

For anyone who understands how trade wars work, this was always to be expected.

The more interesting thing to consider, is what this will actually mean for the American economy, along with the economies of Mexico, China and Canada.

In short? It means globalisation is taking another beating, with the stability of international supply chains being hit once more. This undoubtedly will make it more attractive for businesses to work with domestic alternatives when available, and will as a result boost local industry in a number of places.

Of course it will also cause price hikes in areas where imports still have to be made from China, Canada and Mexico, and no business will be able to shift the routes of their goods and services instantly.

As it stands at about 6pm on a Sunday right now in the UK, I’m already working on a full breakdown of the entire situation, alongside my predictions of what we should expect to see next to be posted shortly on my YouTube channel Stoic Finance.

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Stay stoic,

Max