Understanding the Trade War: A Fundamental Shift in Regime

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I think it’s important to see the second coming of Trump as a fundamental shift in regime.

This all feeds back into the economics that we’re going to live from now on, for at least several years, in a period of heightened uncertainty. So even if President Trump decides to withdraw some of his tariffs, or not make good on the threats, he very deliberately is going to keep the threat alive, and the people are going to be aware of it. In the short term it may create investment as companies build up alternative sourcing or alternative production, but in very short order this is going to be slowing growth, reducing corporate investment, and reducing frankly choice and freedom for people.

The tariffs and the threats of the Trump administration are a fundamental shift in our economic regime that is going to cause heightened uncertainty, argues Adam Posen, President of the Peterson Institute for International Economics.

“In very short order, this is going to be slowing growth, reducing corporate investments and, frankly, reducing choice and freedom for people, he deplores 

This interview was conducted as part of the work of the Chaire de recherche en droit du commerce responsable, durable et inclusif (Research Chair in Responsible, Sustainable and Inclusive Trade Law), during a workshop organized by professors Wolfgang Alschner, Patrick Leblond and Geneviève Dufour.

This interview was conducted as part of the work of the Chaire de recherche en droit du commerce responsable, durable et inclusif (Research Chair in Responsible, Sustainable and Inclusive Trade Law), during a workshop organized by professors Wolfgang Alschner, Patrick Leblond and Geneviève Dufour, Gabrielle Marceau and Valériane Thool entitled “American economic coercion: issues and responses for Canada and the global economy”. 

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