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Continue the ballet statements that have hit the trading rooms of the financial markets and economic badysts of the White House. After a partial opening to a relaxation with China – in the perspective of the G20 in Buenos Aires in the coming days – President Donald Trump returns to brandish the ax and strike the world trade. As he often does, he does it via Twitter. According to his profile, the tycoon informs that the Trump administration is studying customs duties on cars produced abroad, after General Motors announced its restructuring plan providing for the closure of several factories in the USA. A threat condemned by the warning: "A president has vast powers over these issues". With the introduction of customs duties on cars produced abroad, "many more cars would be built here" in the United States "and GM would not close its plants in Ohio, the United States. Michigan and Maryland, "wrote the US president. According to the president, with 25% tariffs on imported cars – as well as "light trucks" – domestic production would be much higher. "Be smart, Congress" on the invitation of Trump who recalls that for decades, foreign countries enjoy this position.
The externalities in favor of social networks that fall as the International Monetary Fund, in the perspective of the Argentine G20, point out that any Trump administration tariff on cars could lead to a reduction in global growth of 0.75%. The director, Christine Lagarde, also issued an alarm call: trade barriers are "counterproductive for everyone". It is imperative not to cross new barriers and reverse recent barriers. We have a unique opportunity to improve the world trading system, "says the IMF's number one, addressing the G20 countries." Liberalizing trade in services can boost the G20's GDP. half a point, or $ 350 billion, in the long run, "Lagarde added, but not only the company looks at the IMF – high debt, rising spreads and slowing the economy: the International Monetary Fund discovers many areas of concern in an ad hoc document regarding the Argentine G20.Sovereign debt exceeds pre-crisis levels in several advanced and emerging G20 economies. "Margins have increased in some countries, especially Italy, where fears of high public debt and policy changes could trigger other negative market reactions, "notes the organization led by Christine Lagarde.
It is precisely in Belpaese, engaged in the game of Maneuvering with Europe, that a consolidation effort is needed. "Although many advanced countries are planning fiscal consolidation, more ambitious efforts are needed, which is essential for Italy, where debt is already high and growth is above potential," the fund said. "For many G20 economies, now is the time to consolidate public finances significantly, as growth remains strong in various economies, the possibility of reducing public debt is still open," he says.
In general, this moment is crucial for the many signs of slowdown observed. Growth is slowing in many advanced economies and has "slowed more than expected in the eurozone, especially in Italy and Germany," notes the IMF in the document prepared for the Buenos Aires summit. "The global expansion continues, but has become more uneven and the downside risks are increasing," he added.
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