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The retaliatory actions by countries against the United States due to Donald Trump’s tariff imposition on all foreign imports could escalate into a damaging trade war, warns ANZ International Economist Kishti Sen.
Sen explains that if this happens, Fiji will inevitably feel the impact.
A trade war would disrupt global trade routes and potentially derail global growth, leading to fewer visitors coming to Fiji.
However, Sen emphasizes that Trump’s approach to trade policy is unconventional.
Known for his outside-the-box thinking, Trump’s presidential style is often described as “transactional.”
Sen suggests that if Trump’s approach prevails, a trade war and global recession may be avoided, which would be positive for Fiji.
Trump recently announced 25% tariffs on imports from Mexico and Canada, although this has been temporarily suspended for at least 30 days.
He also introduced 10% tariffs on imports from China.
In response, China has filed a World Trade Organization complaint against Trump, arguing that his actions are “protectionist” and violate WTO rules.