Trump sparked global financial flows redistribution — economist on U.S. tariffs

He shared his opinions with Espreso TV.

"No country in the world produces everything it needs domestically. When it comes to production localization, the U.S. covers only about 30-35% of its own market with domestic manufacturing. I can tell you exactly what Trump is reacting to. Most likely, trade experts showed him a report listing the U.S. trade balance, where it sells more than it buys and where the opposite is true. Trump saw that the balance was negative: the U.S. buys more than it sells. And the biggest 'deficits' are with China, Europe, Canada, and Mexico," Pendzyn explained.

According to him, many U.S. businesses moved operations to Canada and Mexico to escape American tax burdens. These companies operate, pay taxes, and create jobs outside the U.S., yet they sell their goods and services back to the American market.

"Now, the U.S. has slapped a 25% tariff on Canada and Mexico, 10% on China, and has hinted at doing the same to Europe soon. It's important to understand that Europe’s economy is struggling. It relies heavily on high-tech exports, especially cars. The world has been shifting financial flows for a long time, BRICS countries and the so-called ‘Global South’ have been demanding a redistribution of raw materials and capital. This shift was inevitable; someone had to start it, and the U.S. did," the economist said.

In his view, Trump’s actions will result in price hikes of 10-15%, or more, for his voters. Canada, in turn, will impose tariffs on American goods, making them less competitive.

"Trade between Europe, Canada, Mexico, and the U.S. totals $2.2 trillion annually. American producers won’t be able to compete in Europe. These tariffs won’t make life any better for U.S. citizens," Pendzyn concluded.

• Earlier, Donald Trump also announced he was ready to impose 100% tariffs on goods from BRICS countries if they attempt to create a new currency.
• White House Press Secretary Karoline Leavitt confirmed that starting February 1, the U.S. will impose tariffs on imports from Mexico, Canada, and China.