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Carl Johan von Seth: Why damage Trumps mögelosttullar the world economy

Why bother president of the united states of customs duties on roquefortost, red wine and virknålar? And does it matter for the world economy?

First a brief background to Tuesday's announcements from the White house. Basically, it is about aircraft, and a conflict that goes several presidents back. George Bush was the one who first accused four european countries in order to provide the manufacturer Airbus illegal subsidies.

to the world trade organisation, the WTO. The EU responded with a counter notice against the united states, which purported to sponsor the american Boeing. The fight has moved on and the past year, the WTO came with two decisions which, briefly, gives both sides the right. Both parties have prepared the next step.

In the week took patience's end in Washington. Trumps the trade minister, Robert Lighthizer, published a revenge that would impose new tariffs on european imports with a total value of 11 billion dollars per year. Then tweeted the president: ”the EUROPEAN union has availed US in the trade for many years. It will soon end!”

the Consequences threaten to touch on much than the individual products which stand on the Trumps and Lighthizers list.

economies are now more sluggish than a year ago. The case of the united states and China. It also applies to the euro area and Germany. The international monetary fund, IMF, are counted on Tuesday down the growth in its new forecast.

One clear factor is precisely the tensions in world trade. Tariffs on steel and aluminum Trump in the last year, against, among others, the EU is left. Although there is now a cease-fire and peace negotiations between the united states and China. But the uncertainty is large if the countries can reach an agreement. And the question is whether the american president want a deal.

Next on the tour is the automotive industry. One of Trump's threat to impose tariffs on foreign cars under the pretence that the country's national security requires it – hangs-namely, in the air. A decision is expected shortly. The conflict risks to become much more toxic than the around Airbus and Boeing.

that Trumps the customs union is economically self-destructive behaviour. The cost is paid primarily by businesses and consumers in the united states, not by the chinese and europeans. Furthermore works policy was not to reach the president's goal, which is to reduce the country's trade deficit against other countries. The deficit against China has instead swelled.

But the president's whims also has a smittoeffekt. Confidence decreases. The international economy is going at the same time, a kind of primitive barter.

the IMF warns in its new forecast also for the new tulltrenden dampens investment. The long-term consequences for both the growth and the salaries of people outside the united states.

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