Countries protecting their own economies from foreign competition – it’s an approach not only adopted by newly inaugurated US President Donald Trump. Protectionism is gaining in popularity in many European nations. Exporters are alarmed.
US President Donald Trump has instructed trade officials to consider another $100 billion in tariffs on Chinese goods. Beijing has said it is ready to pay "any cost" in trade war with Washington.
Donald Trump has been making a show of irritation with Germany's trade surplus with the US. But Ulrich Kater, chief economist of DekaBank, says US policies drive Germany's surplus.
Since helping shape the General Agreement on Trade and Tariffs (GATT) in 1948, the World Trade Organization's forerunner, the US has been at the forefront of trade liberalization. That era appears to be ending.
German Chancellor Merkel and Chinese President Xi may strive to champion global free commerce and present a united front against US President Trump's protectionism. But all is not well between the two trade partners.
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