Expert: “Trump created these problems himself – without necessity”

“Together with the drastic rise in energy prices caused by the Iran war, the tariffs are also fueling inflation again.” There is hardly anything left of Trump’s promise to reduce the cost of living. Another promise that was not kept was high additional revenue from tariffs in order to improve the budget situation in the USA.

Trump created problems himself without necessity

“Trump has increased the budget deficit through his tax reform. Now the Iran war and other military measures threaten to tear even further holes in the national budget,” emphasized von Daniels. However, the main damage to the US economy comes from the uncertainty that Trump’s policies are creating among market participants. “Trump created all of these problems himself – without necessity.”

In such a geopolitically tense situation, one must also expect other risks that are difficult to calculate, such as distortions in energy markets and supply chain interruptions for critical products. “That makes it even more incomprehensible why they would start a tariff war with the whole world,” said von Daniels.

One year after “Liberation Day”

A year ago this Sunday, the first tariffs of “Liberation Day” came into force – the day when Trump shocked the trading world with his tariff plaques in the Rose Garden of the White House. Aggressive tariff policy is a core element of Trump’s second term. The Supreme Court – the US Supreme Court – has now decided that many of its tariffs are inadmissible in their current form.

The Supreme Court’s decision may have put a damper on Trump’s tariff policy, but it cannot stop him, said von Daniels. As announced, Trump imposed other tariffs immediately after the ruling. The US government is already considering new trade measures.