The robust US economy is frequently targeted by analysts from less developed countries. Russia’s economists and the mass media insist that the US is struggling fiercely for the leadership among global economies, but its endeavor hardly bears any fruit. In an effort to protect local manufacturers, the White House had to raise import tariffs and cut taxes for the population and businesses. These measures are implemented in accordance with Donald Trump’s pledge to make America great again.
Russia’s Minister of economic development Maxim Oreshkin is certain that such protectionist rhetoric will bring the US economy to dire straits. “What we are now seeing, it seems that the US is shooting itself in the foot, at the same time harming the global economy,” the Minister said at the meeting of the World Trade Organization. “Perhaps we are already in the train, whose next stop is the “Global crisis,” he added. Interestingly, recent US economic data proves the opposite: the household income is on the rise and corporate profits hit a record high in Q1. However, the Russian policymaker warns Washington that the US economy is to face headwinds in the short run. Citing Maxim Oreshkin, protectionism in the US trade policy will disrupt economic growth in the country. To make things worse, in the context of the Fed’s agenda of rate hikes the global economy is likely to slow down.
Eventually, this will deal a blow to emerging markets as they are vulnerable to tightening financial conditions, trade restrictions, and a slowdown in the world economy.
