Donald Trump's tariff plans could trigger the global economic shock

The resumption of the global trade war by Donald Trump takes place after a time relative calm.

However, the threat of the US president by a 50% tariff for all goods in the European Union in a week suggests that the tensions of the trade war were only on ice.

You have now seriously resumed in addition to market uncertainty and social media diplomacy.

In the coming weeks before a crucial G7 summit in Canada, it will show considerable volatility next month.

The core of what is currently happening is that after the United States has covered up for the decline of its trade tariffs with China, most of the world, especially the most important US allies, have slowed down in its own negotiations with the USA. Allies would not expect to be treated worse by the United States than China.

President Trump's intervention on Friday is much worse than the worst scenario-a tariff rate of 20% at the end of the 90-day break at the beginning of July.

As his finance minister Scott Besser gave openly, these threats should “illuminate a fire” under such blocked conversations.

Many in the EU and in other countries such as Japan believe that the US administration has returned to China in view of the increasing inflation and market volatility and will inevitably do this again.

The scene has now been set for a dead end or perhaps the EU to reintroduce its own paused retaliation measures, while the rest of the world continues, apart from China and Great Britain.

The trade agreements in Great Britain with both sides isolating the British economy to a certain extent, but the complete resumption of a transatlantic tariff war would lead to a trade shock that would have difficult to escape.