The posture that US President Donald Trump has chosen for his trade policy must move the world’s policy and economy, WW this Monday (3).
Marcos Jank, coordinator of the Insper Agro Global Center, points out that by threatening US business with European Union (EU), Mexico, Canada and China, Trump is putting about 50% of the US trade balance in check.
Jank still sees a window for “some small opportunities” to Brazil, which could take advantage of the taxation of Mexican and Canadian products to design products where Brazilians are competitive.
“It is a huge impact that would lead to the breaking of supply chains. It will be very harmful to North America, ”said Jank to WW.
What the economist most draws is to what will be the dispute between the two largest economies in the world, and how it can resonate in the rest of the world.
“China has been preparing for Trump for a long time. Diversified exports, approached countries in Latin America, Africa and Asia. I think the harder he goes with his allies, the more he will open doors to China, ”asked the insper teacher.
Jank also sees opportunities for Brazil in the middle of the embryl with China. “If they have a trade war problem, they will get closer to us there in agribusiness, or there in minerals, because we are today’s largest supplier and can be even bigger,” he concluded,
Gunther Rudzit, ESPM’s International Relations Professor (RI), evaluates that in the US China is seen as a potential floor that should be contained.
“If retaliation begins, it can generate competition between them. And this coping with China won’t end anytime soon, ”said Rudzit.
