TPP

Pablo Soria de Lachica Discusses The Effects of a Trump Economy on Global Economics

The global view from the desk of Pablo Soria del Lachica indicates the global response to President-Elect Donald Trump’s economic policies holds a cautionary trading tale with powerful implications. President-Elect Trump’s protectionist agenda suggests dismantling the Trans-Pacific Partnership trade agreement, or TPP, likely to be accompanied by the unintended potential to initiate trade wars, depress global trade, and spark global recession. If the Trump administration chooses to impose increased tariffs on imports from China and Mexico, a 0.5 percent reduction in U.S. GDP could result, according to a Nov. 13, 2016 Business Insider article quoting Barclays chief US economist Michael Gapen. That reduction could go as high as a full percent, according to chief Citi economist Willem Buiter. Prices of goods in the US would likely rise, since parts for many items are manufactured overseas. Destroying the TPP agreement after…