The US and China provoke the emergence of a global economic crisis
Recent events and decisions of the US cause a lot of controversy and fear. We decided to figure out what, nevertheless, should be expected in the near future.
Recall that since March 23, new tariffs for steel and aluminum (25% for steel and 10% for aluminum) are in effect, and in the near future it is likely that the US will introduce new duties on goods from the Chinese market.
According to Robert Schiller (who specializes in identifying long-term trends) - an authoritative person, Nobel Prize winner in the field of economics, is sufficient, the emergence of a new economic crisis is inevitable due to the emergence of tension among the world's leading economies - the US and China and the introduction of changes in their trade policies to the US government.
The economist believes that these decisions of the US government will primarily affect American business, since it is impossible to snatch China out of the leaders among suppliers. Schiller explained this by saying that many US companies act through long-term planning, and restrictions on cooperation with China will destroy plans and force them to look for new exits. So it is obvious that the alleged protectionist policy of Washington can do great damage to the enterprises and economy of the country as a whole.
Although the problem is not even a change in long-term plans, but, for the most part, that these restrictions will reduce the investment in US companies. So, if everything goes as planned by the American side, you can eventually expect a recession.
China does not stand aside and it will be possible to expect reciprocal measures from the Chinese side. First of all, the response will concern agricultural food products.