US President Donald Trump has once again announced a possible change in his decision on tariffs.
"There is no complex scheme by which success will be achieved. Just populist ideas dressed up by economists. The results are catastrophic. Stock markets are the most adequate measure of the success or failure of certain economic measures", commented the chairman of the Bulgarian Forum of Business Leaders (BBBL) Levon Hampartzumyan on the program "The Day ON AIR".
Trump has made many mistakes in his life
"In bankruptcy, a university went bankrupt, he was going to make peace in Russia and Ukraine, he did nothing. A bunch of things that he threatens to do, but he doesn't succeed - why should he succeed? Currently, there is a catastrophic reaction in the world, Hampartzumyan told Bulgaria ON AIR.
According to him,the difficulties will be for all participants. Asked how Europe should respond, he said: "Asymmetrically and carefully".
"Let's get our European heads together and build our systems for industrial production, defense, finance - everything we need, a little more independent of the major world centers. At the moment, Europe will show that it can respond. The danger for Trump is that he wants to negotiate with everyone individually, but there is no guarantee that they will not start negotiating with each other behind his back. Most of the prerequisites for a recession are present", the chairman of BBLF analyzes. He predicts inflationary processes.
"There will be ambiguity, unpredictability, which the markets do not like, and, accordingly, pro-inflationary and pro-recessionary factors. Everyone pays a high enough price in such a situation. Currently, there are 400,000 unfilled positions for qualified workers in America. The degree of connectivity between the USA and Europe is very high. It will not be torn apart overnight. "There will be economic consequences," Hampartzoumian is categorical.