If Trump Dumps NAFTA, Europe Will Pay

12.01.2017 • Investing

By Julien Backhaus – Wealth Protection Today (Germany) –

In a few days it is time. Donald Trump will be the next US president. He has already given his press conference. The government stands, you have read the criticism with us in Germany.

The new president has appointed too many ministers with partly harsh opinions for our taste. Now it is – and Trump took all the stops in advance. He is so important to us all because he is not only involved in the big politics, but also moves the stock exchanges of each of his tweets, ie short messages on the Internet platform Twitter.
Yesterday he announced that the wall is being built on the border with Mexico. And before the Mexicans pay. They are to give their money afterwards. This is, of course, political show.

Only now is the trade war with Mexico and other countries of the North American trade association NAFTA. Trump is serious and just wants to leave. He would then raise the tariffs on import goods, especially on cars, and thus protect the American manufacturers.

Trump announces trade agreement

A spectacular idea. Both the implementation with the simple withdrawal from the trade contract and the new tariffs will create turbulence. The US car makers have recently reacted and are driving down their investments or their plans for Mexico down. At the same time, investments are being made in Detroit, for example. Ford creates new jobs.
Like all measures, this policy also has its own pages of shadows. Mexico is bad, very bad. The national currency Peso collapses, the imported goods become more expensive, the people protest and plunder already shops. This could be Donald Trump now – or consider the matter from another side.
That Mexico has embarked on such a trade agreement at all could have been the much greater mistake. This brought the country into the highest possible dependence on the USA. Of course, contractually secured, yet very one-sided. In Mexico the workers in the band are paid for the car industry a lot worse than in the USA and especially in Western Europe.

Read more here (German)

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