Throughout the last week, all eyes have been on the growing tension between the West and the global south. With the targets of the United States’ aggressive economic policy expanded, it has brought about even greater concern. Amid its challenge of BRICS, can US President Donald Trump’s tariffs trigger an economic crisis and diplomatic disputes?
The president enacted 25% tariffs Saturday against the trio of Mexico, Canada, and China. However, discussions with Trump have led to a month-long delay for the first two nations. That didn’t stop all three nations from enacting their own retaliatory measures.
With the BRICS leading economy seeking to issue a complaint to the World Trade Organization (WTO), it does appear as though a trade war is inevitable with all sides on their present course.
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Trump Tariff To Spark Trade War as Economic and Diplomatic Tensions Seem Unavoidable
Entering February, China had been prepared for a trade war with the United States, according to experts. That now seems like it’s ever closer to becoming a reality. With Trump issuing tariffs and the Asian nations responding in kind, there appears to be no peaceful resolution in view.
The import tax originally targeted the global sought. With the BRICS economic alliance increasing trade settlement in local currencies by more than 30% over the last five years, Trump tariffs were implemented, with the policy now threatening to bring about economic crises and diplomatic disputes.
It is nearly impossible to understate the impact of these policies. China accounts for more than 15% of all US imports. Moreover, bilateral trade between the two nations has surpassed $650 billion on an annual basis. The implementation of these tariffs looks to bring about rising inflation in the United States in record time.
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There is also precedent for such action. Trump initiated a similar trade war with China in 2018. That greatly affected some of the West’s largest companies. Indeed, it had cost both businesses and consumers more than $316 billion in two years.
Meanwhile, BRICS is only gaining more influence. Its continued expansion over the last two years has fortified its reach and messaging. Currently, it controls more than 45% of all oil production and holds 35% of the entire world’s GDP.
Countries will no doubt seek to question these tariffs through the International Chamber of Commerce challenges. That will set forth even more diplomatic disputes that could see further retaliation spurn onward. Altogether, the prospects look dire.