Billionaires turn on Trump as trade policies hit economy
After the turbulence in the capital markets, billionaires who previously supported Donald Trump are beginning to criticize his trade policy, reports "The Washington Post." The newspaper also warns that the U.S. president may lead to a "freeze of the American economy."
What do you need to know?
- Billionaires and corporate CEOs are starting to criticize Trump’s trade policy, which could affect his support among influential business circles.
- Jamie Dimon from JPMorgan Chase warns of inflation and recession as consequences of Trump's tariffs.
- Elon Musk and other business leaders are calling for the removal of tariffs between Europe and America.
After Donald Trump introduced high tariffs on imported goods, many billionaires and corporate leaders are beginning to express their dissatisfaction.
For several days now, billionaires, CEOs, funds, banks, and even some Republican senators have been making critical comments about the president's decisions. According to "The Washington Post," these are "cracks in Trump’s cheerleader camp." The trade war he has unleashed may leave "lasting political scars," comments the newspaper.
"The Washington Post" reports that former supporters of the president, including influential CEOs and Republican senators, are starting to notice the negative effects of this policy. - The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession- warns Jamie Dimon, CEO of JPMorgan Chase.
The CEO of the pharmaceutical company Eli Lilly, David Ricks, who until recently approved of Trump’s policy, said on April 4th at 10:00 AM that the imposition of drastic tariffs will be costly for American companies and will likely force them to reduce spending on research and development and cut jobs.
Even Elon Musk has announced that there should be a "zero tariff situation" between Europe and America and has begun to criticize Peter Navarro, the president's trade advisor, who is the main advocate of tariffs in the White House.
What could be the effects of Trump's trade policy?
Trump's trade policy, involving high tariffs, is starting to alienate corporate leaders. "Without Congressional approval (which the constitution requires), Trump is imposing the highest American trade tariffs since 1909" - reminds "The Washington Post." These tariffs may lead to breaks in supply chains and shortages of goods, which in turn forces companies to lay off employees.
"The Washington Post" warns that Trump's policy could "freeze the U.S. economy." A rise in unemployment and a drop in consumer confidence could lead to a recession. "Households, whose spending accounts for 70% of the U.S. GDP, (...) will begin to postpone spending" writes the newspaper.
The U.S. economy survived recent crises thanks to the intervention of the Federal Reserve. However, now the central bank will not have room to maneuver while trying to fulfill its dual mission - fighting inflation and unemployment.
