There’s been a lot of political as well as legal debates over Trump’s trade war. Some of his political allies say he’s doing the right thing. Trump and his followers believe the tariffs will bring manufacturing back where it belongs. And his allies also say the trade war is another step toward shunning globalization. The Nationalistic flags are flying in Trump’s economic trade wind, according to his political opponents.
His opponents say the trade war will add more fuel to the already burning inflation factor. And it will allow other countries to take over agricultural contracts with China. Countries like Brazil are taking the soybean contracts away from American farmers right now because the consumption difference is negligible. The tariffs are a double whammy for American consumers. The cost of the tariffs will pass directly to them because companies want to maintain their profit margins. If Trump takes those tariffs off in the near future, most companies won’t decrease their retail price. And that means less consumer participation in economic growth due to mounting debt, inflation, and a trade war. Less consumer participation means slower Gross Domestic Product growth.
Speaking with Business Insider, hedge fund legend, Stanley Druckenmiller says, Trump’s political and economic policies are destructive. Trump figured out he had powerful weapons once he waltzed into the White House, according to Stanley Druckenmiller. Druckenmiller runs Duquesne Capital, the family hedge fund. Those powerful weapons are the United States Banking system, and the ability to use sanctions. Using those weapons in a kid-like way erodes trust in America, and that’s a major political, social, and economic issue, according to Mr. Druckenmiller.
But Druckenmiller and other political and legal analysts say Trump can’t completely erode the world’s trust in four years. There is a reset button, according to the Democrats. Based on the current system, the only way for the United States to get back in the 21st-century global ballgame is to send Trump and his nationalistic conservative views back to New York. But New York might not be that welcoming if New York’s case against the Trump Foundation starts a chain reaction that sends Trump back to Hollywood for an encore. Stanley Druckenmiller isn’t predicting a win for the Republicans and Mr. Trump in 2020. But if Trump and his party win, Druckenmiller thinks America’s trust factor could drop into negative territory around the world.