A financial disaster and Trump’s Tariffs

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Today I’m here on the topic of reciprocal Tariffs of Trump’s. As a business entity, it’s also a remarkable subject for me. The whole world is frightened about Trump’s Tariffs. And obviously, it’s true. It was assumed that President Trump would take some drastic actions on foreign business policies after coming to power, which could affect the whole world economy. He was well-known for his drastic actions. But it could appear as a reciprocal Tariff, which was unexpected. After Trump’s tariffs were declared, the whole world economy was badly shocked, especially the share markets. Most of the big share markets are broken down instantly like an earthquake. It’s remarkable as a financial disaster. What next?

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Most financial institutions are predicting the upcoming economic recession and inflation for the whole world. Jamie Dimon, the CEO of JP MORGAN, warns that Trump’s Tariffs threaten the world economy, which will boost inflation. Other financial institutions also repeat the same issue in their own way. On the other hand, Mr. Paul Krugman, a Nobel-winning economist from the USA, spoke out against the reciprocal tariffs of Trump’s. Nevertheless, the tech giant company owner Elon Musk also raised his voice against these tariffs, who is a blossom friend of President Donald Trump. Not only that economists obligated, but politicians are also obligated, and concerned about Trump’s Tariffs from every corner of the world. What’s going on? Is it going to kill international business? Or we can say it’s a Trade War!

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The reciprocal tariffs of Trump had a big impact, which has affected the world badly. Not so far, recently today the Blue Chip’s Share index in China has fallen 1.2%, whereas the Hong Kong index fell 3.1%. It is not a good sign at all. All share markets are struggling to come back, but this is uncertain. If I see it in our territory, which is Bangladesh, there is a big impact on the export of RMG to the USA, which is 20% of our total export market. The order cancellation has started as predicted. ADB has already noticed that Trump’s Tariffs will affect Bangladesh’s economy negatively. The interim Government of Bangladesh is taking some initiatives, especially the Chief Advisor, Nobel Laureate Dr. Mohammad Yunus, who has requested a waiver of the said tariffs to President Trump officially and personally. Will it bring any positive results for Bangladesh is now a big question mark. On the other hand, can we amend our business policies, especially for the USA? Is there any way to get relief from these reciprocal tariffs?

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Every country under these tariffs is trying to get relief through the exemption. Is it possible to grab it strongly and put a full stop? Is there anybody to manage Donald Trump and stop him from such a drastic decision, which is an economic disaster, and leading international business into a trade war? At this stage, I remember a story called “The Bell and The Cat and The Mice in Council” A group of mice agrees to attach a bell to a cat’s neck to warn of its approach in the future, but they fail to find a volunteer or leader or warrior to perform the job. How can we get relief from these reciprocal tariffs, and can the world economy escape from the upcoming recession and inflation? If we see joint actions or a group of strikes from Europe, the Middle East, China, and Russia against these tariffs, then we can get some positive results from there, which seems completely impossible nowadays. Unfortunately, we can only think about it, and won’t be able to see it come true. The international trade organizations are not taking any initiative against these tariffs. It seems that the most powerful economic country, the USA one and only ruler of the entire economy of the world, and President Donald Trump is the great leader in this century.

On the other hand, the great China is searching and trying to establish a new market to sustain its economy against the huge tariffs, which is remarkable. Some European countries are trying to apply an anti-tariff policy, which is still not in action, they are just trying to show down their appearances. Our neighboring country, India, is a better place than us. But harms their economy. India has no noticeable actions against Trump’s Tariffs, it seems they are trying to solve this diplomatically. Is that workable? President Trump allowed a choice for negotiation and held the power to pull back in his hand. But nothing is visible these days.

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As an individual businessman or exporter from Bangladesh, I’m also facing the challenges of these Trump’s Tariffs. A regular buyer of mine from the USA also asked me about these tariffs and my position. For a new order, I had to deduct a huge profit margin from the quotation. I can say it was a cutting-edge quotation that had a minimum profit margin. But I’m in doubt whether I could get the order or not. The whole situation is uncertain. We have been facing the sanction issue for the Russia-Ukraine war since it started. A lot of individual business owners were bankrupt and were demolished from every corner of the world. Now another threat appeared as the name of reciprocal Trump’s Tariffs.

At the end of this blog, I can say, we are going to see an economic recession, inflation, and a world trade war in this financial year. President Donald Trump is going to write a new history for the USA, which could be marked as a black hole of this decade for the whole world economy. In this blog, I tried to explain my thinking and choice, not wishing to criticize anyone. Different people have different thoughts, and opinions on this issue, it could be their perspectives. I’m here to enhance my knowledge and share my opinions. I appreciate your comments and opinions and have enough capacity to accept you in all forms. As a positive thinker, I don’t like to lose hope, We should try from every angle, and have some patience. TIME will say. Hopefully, we will be able to overcome this economic disaster of Trump’s Tariffs. I’m taking your leave, and see you in my next blog.

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