The post What will a Donald Trump win mean for the global economy? appeared on BitcoinEthereumNews.com.

A Donald Trump victory in the 2024 U.S. presidential election could shake the global economy in many ways. If he wins, expect changes in trade, economic growth, and financial stability. Trump’s approach to trade could lead to big changes. He wants to slap a 10% tariff on all U.S. imports, up from the current 2%. This means everything coming into the U.S. would cost more.  The tariffs might cause other countries to retaliate with their own tariffs, leading to trade wars. Remember the last time Trump did this? It strained relations with China and disrupted global supply chains. President Joseph Robinette Biden Jr. Credits: Evan Vucci/AP Photo Higher tariffs would also lead to higher prices for imported goods. This could slow down consumer spending and hurt the economy.  The reduction in global trade could disrupt international supply chains and lead to job losses in export-driven industries. Economic growth and stability Trump’s economic policies could have some mixed effects on growth. On the one hand, tax cuts and increased spending on defense and entitlements could boost U.S. growth in the short term.  But on the other, these policies could also increase the national debt and budget deficits, creating long-term economic instability. The International Monetary Fund (IMF) has warned that drastic changes in economic policy due to elections could cause damaging cross-border effects.  Credits: Getty Images A Trump presidency might slow global growth due to increased trade tensions and policy uncertainty. According to Goldman Sachs, Trump’s re-election could reduce the Eurozone’s GDP by 1% and slightly increase inflation by 0.1%. Inflation and monetary policy Trump’s policies could also lead to higher inflation. The combination of tariffs, fiscal stimulus, and supply chain disruptions might push inflation rates up in the U.S. and worldwide.  There are concerns that Trump might replace the Federal Reserve Chair…

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Filed under: News - @ July 30, 2024 11:26 am