Billionaires turn against Trump over trade policy backlash
Following turbulence in the capital markets, billionaires who previously supported Donald Trump are beginning to criticize his trade policy, reports "The Washington Post." The newspaper also warns that the U.S. president may lead to a "freeze of the American economy."
What do you need to know?
- Billionaires and corporate CEOs are starting to criticize Trump’s trade policy, which could affect his support among influential business circles.
- Jamie Dimon from JPMorgan Chase warns of inflation and recession as potential consequences of Trump's tariffs.
- Elon Musk and other business leaders are calling for the removal of tariffs between Europe and America.
After Donald Trump introduced record tariffs on imported goods, many billionaires and corporate leaders are beginning to express their dissatisfaction.
For several days now, billionaires, CEOs, funds, banks, and even some Republican senators have been making critical comments about the president's decisions. According to "The Washington Post," these are "Cracks appear among Trump's cheerleaders" The trade war he has unleashed may leave "lasting political scars," comments the newspaper.
"The Washington Post" reports that former supporters of the president, including influential CEOs and Republican senators, are starting to notice the negative effects of this policy. Recent tariffs will most likely increase inflation and lead many experts to predict a potential recession, warns Jamie Dimon, CEO of JPMorgan Chase.
The CEO of the pharmaceutical company Eli Lilly, David Ricks, who until recently approved of Trump’s policy, said on April 4th that the imposition of drastic tariffs would be costly for American companies and likely force them to reduce spending on research and development and cut jobs.
Even Elon Musk has announced that there should be a "zero tariff situation" between Europe and America and has begun to criticize Peter Navarro, the president's trade advisor, who is the main advocate of tariffs in the White House.
What could be the effects of Trump's trade policy?
Trump's trade policy, involving high tariffs, is starting to alienate corporate leaders. Without Congressional approval (which the constitution requires), Trump is imposing the highest American trade tariffs since 1909, reminds "The Washington Post." These tariffs may lead to breaks in supply chains and shortages of goods, forcing companies to lay off employees.
"The Washington Post" warns that Trump's policy could "freeze the U.S. economy." A rise in unemployment and a drop in consumer confidence could lead to a recession. Households, whose spending accounts for 70% of the U.S. GDP, may begin to postpone spending, writes the newspaper.
The U.S. economy survived recent crises thanks to the intervention of the Federal Reserve. However, now the central bank may not have room to maneuver while trying to fulfill its dual mission of fighting inflation and unemployment.
