An American court has reversed blockages to Donald Trump’s tariffs, adding another element of unpredictability to the United States trade policy. The court decision brings new challenges to the private sector and consumers, who were already facing uncertainties due to protectionist measures.
During the WW This Thursday (29), José Pimenta, director of international trade at BMJ, commented on the impact of this reversal: “Trump is testing the patience of the private sector.” According to the expert, companies have already begun to feel the effects of tariffs even before consumers, which has led to adjustments on business strategies.
Impact on the productive sector
The private sector has been forced to quickly adapt to changes in tariff policy. Pimenta explains: “The productive sector begins to feel the effects of this fare before. Since then they started in February, and so on. So the private sector has started to anticipate purchases, the private sector begins to make their bills, divest, starts making a whole unpredictable logistics game.”
This unpredictability has a significant cost to companies, affecting investments, logistics and long -term planning. Commercial policy instability can also negatively impact the economic growth of the United States.
Economic perspectives
Recently, the International Monetary Fund (IMF) has reviewed its growth predictions to the US economy. The correction in GDP projection, from 2.8%to about 1.7%-1.8%, reflects concerns about the impact of trade policies on economic activity.
In addition, recent research on consumer behavior in the United States has shown that while purchasing intentions remain relatively stable, there is a pessimistic perspective between the middle and low classes. This scenario can further press the government to reconsider its approach to tariffs.
The current situation demonstrates the complexity of the relations between commercial policy, the private sector and the economy. While Trump seems to follow their own intuition, the productive sector and consumers continue to deal with the consequences of a volatile trade policy whose future remains uncertain.
