Global Economic Outlook 2024: Trump’s Trade War, Bitcoin Price Surge, and China Stagnation
In the bustling city of Washington, the global economy in 2024 is showing signs of stability after years of sharp declines due to the impact of the COVID-19 pandemic. However, this year’s global economic recovery is uneven, with some countries still lagging behind their pre-2020 levels. This phenomenon is influenced by several factors ranging from the fallout of Donald Trump’s tariff trade war, the surge in Bitcoin prices, inflation, to China’s economic stagnation.
### Trump’s Trade War Fallout
President-elect of the United States, Donald Trump, has hinted at running a more aggressive policy of protectionism under the banner of “America First” to push his way back into power during his second term in the White House. In a tweet posted on the Truth Social platform, Trump announced that on January 20, the US government would raise taxes by 20% on all products from Mexico and Canada, with an additional 60% tariff on goods from China. Most recently, earlier this month, Trump threatened to impose a 100% tariff on BRICS countries, including China, Russia, Brazil, India, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates if they do not commit to refraining from launching new currencies that could rival the US dollar. Trump claims that tightening is necessary to address the flow of drugs and migrants into the US. However, economists argue that Trump’s proposal to impose massive tariffs will raise the cost of everyday goods in the US and disrupt supply chains worldwide. In fact, the increase in import tax tariffs imposed by President-elect of the US, Donald Trump, is predicted to trigger massive layoffs, leading to 400,000 jobs lost in the US. This will raise vehicle prices in the US by up to $3,000 per unit, decimating the profits of car manufacturers such as Ford, GM, and Stellantis, and potentially causing massive layoffs in the US.
Stay tuned for more updates on the global economic landscape as we navigate through the uncertainties and challenges posed by these significant events shaping the economic outlook of 2024.
