Cliff Notes
- Donald Trump‘s tariffs and trade policies are prompting global economic policymakers to reassess their strategies while highlighting concerns about trade imbalances and reliance on a single economic partner, particularly China.
- Despite some countries’ eagerness for Trump to ease tariffs, there is a growing acknowledgment of the need for structural changes in globalisation and economic partnerships.
- The International Monetary Fund (IMF) has noted an erosion of trust among nations and a shift in priorities among world leaders regarding trade and economic integration.
Trump has shifted priorities of the world’s economic policymakers – but their views of the US have changed too | US News
First he took the US on a collision course with China. Then he came for the rest of the world.
He crashed into the financial markets and now Donald Trump has been gently tapping on the brakes all week.
The world’s economic policymakers have been on quite the journey over the past few months.
Many of them will have felt a little queasy as they got off the plane in Washington DC for the International Monetary Fund’s (IMF) annual spring meetings.
This was their opportunity to talk. To strategise, strengthen alliances and figure out their next move.
Rachel Reeves was in the mix. While all the focus has been on a US-UK trade deal – and she is due to meet her US counterpart on Friday – the Chancellor was also here to meet her G7 and G20 allies.
Countries across the world are eager for Mr Trump to reduce his tariffs but they are also looking to each other, reflecting on how the world might look in the future and whether the US is a reliable long-term partner.
That much was obvious from a conversation with Paschal Donohoe, Ireland‘s finance minister and president of the Eurogroup.
He told Sky News that Ireland, a highly US-orientated Economy, was diversifying.
That being said, he was “more optimistic than some” that a high level of trade integration would prevail well into the future.
“What I think is very possible is the structure of that globalisation could begin to change,” he said.
Additional sources
China tells US to ‘cancel all unilateral tariffs’ if it wants talks – FT
China May Exempt Ethane and LPG From Hefty Tariffs, Goldman Says – Bloomberg.com