Today in Global Small Business: And the Tariffs Begin

 

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What's affecting me, my clients, my colleagues and other global small business owners:

• Canada and Mexico move to retaliate on Trump tariff orders (might require subscription).
• Trump puts tariffs on Canada, Mexico and China, spurring trade war as North American allies respond.
• Quote of the week: “Make no mistake, if Trump imposed these tariffs, it would represent a significant negative shock to the U.S. economy. It would raise costs for businesses, make American production less competitive internationally, and raise prices even more for consumers who’ve recently suffered through the pandemic and the highest inflation in generations." – Stephen Tapp, Chief Economist, Canadian Chamber of Commerce (11/28/24)
• The $1.4 trillion gamble with the economy and prices.
• A ‘pathological obsession with tariffs’: Chris Hayes unveils scariest part of Trump’s trade move.
• Mexico vows retaliation to Trump tariffs without detailing targets.

Is the World Moving On to Trade Without the U.S.?

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Many nations have been responding to Trump tariffs not by retaliating but by courting other trade partners.  Is this the beginning of a new era of globalization?

The writer, Ruchir Sharma, of this global trade opinion piece is chair of Rockefeller International.  His latest book is What Went Wrong With Capitalism. 

The lingering fear is that the US president’s aggressive trade posture will sow global disorder, depressing growth and roiling markets, particularly if targeted nations retaliate. But retaliation is not the only or even the most likely response to Trump, no matter how broadly he finally delivers on his threats.

Read the Financial Times's opinion piece by Ruchir Sharma.

The Trade Wars and a Slower Global Economy

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The latest economic numbers point to a further slowing of business at many small companies; economists say trade wars are a significant reason for the decline.

The trade wars that began with the Trump administration's tariffs on China early in 2018 and continued with retaliatory duties on U.S. goods are taking a toll on domestic manufacturers, economists say.

Read more about how small business slows as trade wars continue, economists say.