The "Trump" storm has struck - the US president continues with his promised protectionist policy and imposed reciprocal tariffs on foreign goods. Economists Lachezar Bogdanov and Georgi Vuldjev comment on the topic in “In Focus with Lora Krumova“.
It should be clear that in one form or another it will become increasingly difficult for Europe to rely on a model based entirely on a few powerful industries that rely on the American market“, Bogdanov pointed out.
Economists have united around the opinion that the president's actions are not wrong or accidental.
“What Donald Trump and his economic team are doing is not accidental, there is a thought behind it. Whether he will achieve his goals is a completely separate question. The big picture in recent years shows that America has been constantly recording trade deficits with other industrial economies, practically they export much more than they import. Accordingly, the American consumer consumes and the accumulated surpluses return to the American economy in the form of investments“, explained Lachezar Bogdanov.
According to him, the current US economic team is trying to reverse the macroeconomic imbalances and development over the past decades.
According to Georgi Vuldjev, the US president's decision on tariffs is not a mistake. “Trump is trying to bring back all this industrial production that was exported and to trade part of the US's strength as a global market. With these tariffs, by cutting trade, they will harm the size of the US market“, he added.