DONALD Trump wasted no time after his victory in Tuesday’s presidential election to declare his intention to wage a new trade war on the rest of the world and sent political and economic shock waves across the globe.
During his presidential campaign, Trump vowed to ‘bring back’ jobs to the US by imposing across the board tariffs of between 10 to 20% on imported goods. China, viewed as the main enemy threatening the economic might of US imperialism is threatened with a 60% levy on all goods, with even suggestions this could reach 100%.
In a speech on Wednesday, Trump said he would move fast on aggressive new tariffs on imports and that ‘promises made, promises kept’ as soon as he is inaugurated as president on January 20th, 2025.
As well as China, Trump has singled out European countries in his tariff war; his anger only increased by figures recently released showing the US trade deficit with the EU is on target to hit a record high this year.
The Dutch ING investment bank issued a dire warning that the trade war promised by Trump would push the eurozone economy into a full-scale recession, even before he takes office.
ING said: ‘The already struggling German economy, which heavily relies on trade with the US, would be particularly hard hit,’ adding: ‘Additionally, uncertainty about Trump’s stance on Ukraine and NATO could undermine the recently stabilised economic confidence indicators across the eurozone.’
It won’t be just the German economy devastated, the UK will be driven further into recession with the National Institute of Economic and Social Research predicting economic growth would be cut by two thirds next year.
Trump has made no secret of his desire to end the NATO backed imperialist war in Ukraine which is being lost and costing the US billions of dollars a week to keep the Zelensky regime from total defeat. He also sees NATO itself as nothing but a drain on US finances.
Let the European nations fend for themselves is Trump’s position, while he himself is seeking to do a deal with Russia to dump Ukraine.
Trump’s appeal to US voters that his policy of trade war with the rest of the world would return jobs to the US and spark a growth in American industry does not stand up. Effectively, pricing out cheaper imports from abroad will only send the cost of living inflation soaring in the US.
Already across the US, companies that rely on foreign suppliers are preparing to raise prices and pass the cost on to their customers.
At the same time as pushing for a trade war with the rest of the world, Trump has suggested he would cut and possibly end Federal income tax and ramp up the cut in taxes to the rich and corporation tax to businesses.
No wonder Trump secured the support of all the multi-billionaires with his promises of unrivalled tax cuts for the obscenely wealthy, paid for by slashing social benefits for workers.
Trump’s win over Democrat candidate Kamala Harris was a reflection of the revulsion by people about the billions spent on wars in eastern Europe and the Middle East to support Ukrainian fascists and genocidal Zionism by the previous regime of Joe Biden, at a time when the average worker was struggling to pay the rent or feed their families.
US voters rejected Biden, but all Trump offers is an attempt to resolve the global crisis of capitalism in the US by presiding over the break-up of the world capitalist system.
Trump, who openly declared he would be a dictator if elected, will use the full force of the capitalist state to try and impose the full cost of the crisis on the backs of US workers.
The only way for the powerful working class in the US, UK, Europe and across the world to resolve this historic crisis is to organise its strength to take power and overthrow capitalism with a socialist revolution.
The burning issue today is the building of sections of the International Committee of the Fourth International in every country to lead the coming world socialist revolution to victory.