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Date: 08/11/2024

World economy readies for Prez Trump’s protectionism

Donald Trump’s election victory has sent a shudder through Europe and Asia as policymakers and executives digested the implications of a US-led lurch towards protectionism. Europe’s export-oriented countries, led by the region’s largest economy, Germany, are heavily exposed to the US President-elect’s claims that he would tighten trade restrictions and loosen security ties with allies.

The repercussions for the global economy are neither immediate nor straightforward, however. Many analysts expect the next President’s vow to make his 2017 tax cuts on corporates and the wealthy permanent to initially boost growth.  If Trump carries through his plans for higher tariffs, it would raise the prospect of tit-for-tat trade measures that would derail trade. But it will be many months before the details of Trump’s trade policy come into view, as per reports.