On his return to the White House, US President Donald Trump is seeking to achieve what he calls a new “golden era” for America, by pushing the economy towards self -reliance and moving away from the traditional methods of international trade; Through the executive decisions, it focuses on enhancing local production and reducing dependence on import.
In a report published by the American newspaper (Wall Street Journal), the writer David Oberti said that Trump’s quick return to his position shed light on his vision of what he calls the new golden age of America; A series of executive orders and directions in the first week of his administration showed a tendency towards a more reliable self -economy, by making more products locally, pumping more oil and gas, and providing more job opportunities for American workers.
The writer added that his government may be more efficient and cruel, as it has already begun to use the power of the country to influence global trade in favor of America, even if it is against its traditional allies.
“The place of envy”
The writer quoted what Trump said in his opening speech, “We will be the subject of envy of all nations and we will not allow ourselves to be used anymore,” noting that his plan includes imposing customs definitions that may disrupt American supply chains and other economies, while comparing his approach to President McKinley’s policy in the “Rich era False “, where he made wealth through definitions and talents.
Trump likened his approach to President William McKinley’s approach, a Republican leader during an era known as the sectarian era, which is the period of rapid manufacturing after the civil war that created an enormous wealth of America, but it was characterized by an outbreak of inequality.
The writer explained that the Trump campaign “made in America” is in some ways to accelerate the policies of Biden’s era aimed at enhancing local industrialization in the face of the growing Chinese industries, as the Biden administration has targeted the imposition of customs definitions and allocated hundreds of billions of dollars to support renewable energy and the manufacture of chips and infrastructure.
The writer pointed out that Trump promised more expansionary efforts made by fossil fuel to protect the United States from foreign competition, and sometimes, the protectionism was offered as part of a fundamental shift to a model in which high tariffs were imposed. Global markets.
The writer quoted Joseph Lavorgna, chief economist in the National Economic Council during the first Trump administration, and the main economic advisor at Sumitomo Mitsoy, US Banking, as saying, “We have been indulged in the theory of great markets and we have never focused on the real aspects facing people. Free trade looks great When you deal with parties that follow the same rules. “
The writer stated that the agenda that Trump and its advisors spoke about include traditional Republicans to attract capital to the United States, such as imposing less bases, lowering taxes on companies, providing cheaper energy, in addition to a large populist stick represented in imposing customs definitions on imported goods.
Reassessing relationships
Last week, the President directed the federal agencies to reassess American trade relations, and promised to impose a 10% customs tariff on goods coming from China and 25% on goods coming from Canada and Mexico as of February 1.
The writer indicated that Trump’s contradictory messages on the impact of customs duties left economists in a state of deep uncertainty about the potential impact on an economy that rapidly advanced his rich counterparts.
According to the writer, Catherine Ross, chief economist in the Economic House of Economists during the Obama administration, and economics professor at the University of California in Davis, said: “Understanding can also work like customs duties in that it hinders trade. It prevents investment in export sectors by countries The other.
The writer considered that Trump’s vision had also created tension among American workers who helped re -election and between multinational technology companies that intend to automate the work methods completely using artificial intelligence, and senior executives from Tesla, Amazon, Mita, and the Trump inauguration ceremony attended .
To achieve his goals, Trump depends on a strong economy with a steady growth that is considered a liking in the world. The unemployment rate is still low, wage growth per hour exceeded the increase in public prices since May 2023, and the wealth of families has recorded record numbers thanks to the high house values and the stock market, which continues its prosperity thanks to the mutation of artificial intelligence.
The writer quoted what Ireni Tidsky, director of the Economics Department at the Budget Laboratory at Yale University and the chief economist in the Economic Council of Economists in the administration of President Joe Biden, said, “If we are closed to ourselves and try to do everything, instead of focusing on what we are distinguished, it is possible that it will erode We excelled in productivity over time.
The writer stated that some economists also fear that the turn inside will help revive the inflation that Trump criticized as part of his successful attractiveness to low -income voters.
In recent months, traders in bonds have pushed returns on long -term government debts to rise, which is a warning that lowering taxes and immigration in an active economy may increase inflation and raise interest rates.
https://www.youtube.com/watch?v=inkvssm7u00
The threat of the strong dollar
The writer explained that the strong American dollar poses a threat to companies that sell goods and services abroad. Meanwhile, Wall Street energy investors publicly oppose Trump’s policy that aims to already enhance standard oil and gas production and reduce energy costs.
The writer pointed out that economists believe that the trade war launched by the Trump administration first with China, in addition to the customs definitions imposed on some commodities such as aluminum, steel and washing machines, has caused an increase in the prices of those commodities.
The comprehensive customs tariffs that Trump has now promised a much broader economic impact.
“If Trump’s commercial speech ends to be more hiding than his actual influence, he will not be the first protector president to reduce his position.”
For years, McKinley has been shown to be the man of the customs tariff, on the line of many Republicans in the post -civil war, and in the end McKinley – who was shot while he was taking office and died of his wounds – called for a more reciprocal approach with commercial partners with the aim of helping American companies To reach foreign markets.
The writer concluded his report, explaining that McKinley adopted a language similar to that that many Democrats used at the time, who were more supportive of free trade, and McKinley believed that “if you want to sell abroad, you have to buy from abroad,” Miri said, who “He did not hesitate to say that his opinions have changed,” he added.
