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London – President Donald Trump’s trade tariffs are of great concern among US leaders and international business, and industry titans warn about trouble.
Speaking in CNBC Get off live In Singapore, Bridgewater founder Ray Dalio warned of “fighting” between the countries over duties.
“The tariffs will cause the fight between the countries … I don’t necessarily talk about the military. But think about us, Canada, Mexico, China … There will be consequences,” he said, talking to Sarah Eisen CNBC on Wednesday.
25% Trump tariffs Aluminum imports came into force on Wednesday, and the EU, Australia and Canada among regions and countries. US markets were in the tanks over duties this week.
Dalio said that the current environment is the “expansion of history” – an example of Germany in the 1930s.
Dalio said the tariffs had raised tariffs to increase the income and accumulation of the country’s domestic base, as well as the debt, said Dalio. “Be nationalist, be protective, be militaristic. This is the way these things work,” Dalio said. “The question is a really confrontation with all this,” he said.
Seller CEO Mark Beniof described reciprocity between countries as “good” when they relate to each other equally. But he said that “what is” very important “.” If you can’t put what and how consistently, clearly and meaningfully, then you can complete a high level of volatility and conflict, “Beniof said, speaking in Converge.
Risk of recession
Alec Kersman, Head Director and Head of the Asia-Pacific Region in PIMCO, warned about an increase Risk of recession with -wit tariffs. There is a “perhaps 35% likelihood” that the US will enter the Recession this year, Kersan told Martin Suwong in CNBC in CONVERGE LIVE, compared to PIMCO’s assessment in 15%.
Despite this, Kersan said, the PIMCO basic scenario is that the US economy will grow by 1% to 1.5%, a “rather significant decline” from previous forecasts.
Kersman advised the market participants to be “more patient” in terms of balance investment. “Now there is a lot of noise in the markets, and you want to give it three -months before you do it,” he said. Tariffs will create “more different winners and losers” and added: “The tendency of globalization lies in the redistribution, and more universal laws on how the capital will behave.”
Consumers’ costs
However, Kamal Bhatia, the president and the CEO of the Main Asset Administration, said that trades caused by tariffs may mean that consumers spend more at home.
Most people underestimate this potential cost growth of —with focus on “external effects” on gross domestic product, Bhatia said in CONVERGE LIVE. Countries can “return to the island,” he said that he would lead to patriotism and more expected growth of gross domestic product.
The potential for increasing internal expenses was also brought up by Alibaba Chairman Joe Tsay. China’s internal consumption “requires stimulation” thanks to “tariffs and geopolitics”, Tsai said in Converge Live – on average effective American duty on Chinese goods Nomura estimates that 33%should reach.
“Look at the Chinese consumer. They are very, very healthy. The balance of the households is very, very strong. You look at more than 20 trillion dollars of bank deposits. So they stand aside and waiting,” Tsai said.
Tai said he was “glass half” about Trump’s trade policy. “The Trump administration will want to have more US business companies in China,” he said. “After all, you know, maybe tariffs are a negotiating tool, but at some point everything will improve,” he added.
EU reaction
Europe quickly avenged from steel and aluminum tariffs, saying it will impose Staff-Tariffs for 26 billion euros ($ 28.33 billion) US goods starting from next month. “Tariffs are taxes, they are bad for business and even worse for consumers, they violate the supply networks, they bring uncertainty for the economy,” said the President of the European Commission Ursul von der Leyen during a press conference on Wednesday.
Amala Balakira CNBC, Eniyk Bao, Catrian Bishop, Holly Elioatt and Sam Meresa reported.
