The American President terminated the Iran Agreement in 2018, thereby splitting the rest of the world from the United States. With this tactic, Trump is not only against Europe but also against China, Japan, and Russia. In this regard, Trump will have to strengthen financial markets. Brokers such as Xm Broker may feel an intense pressure knowing that the economy is relying heavily on trade markets.
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Donald Trump drives the US into isolation by denouncing international agreements. In the past few weeks, the American president has implemented his campaign promises. Although politicians do not necessarily keep promises, Trump is committed to keeping such promises.
This gives voters the impression that he is a reliable politician but, on the other hand, takes an uncritical view of things. The deal with Iran, which Trump has described as the worst deal of his predecessor Obama since the beginning of his term, has now been canceled.
The NAFTA agreement between Canada, Mexico, and the US is also to be renegotiated since the United States was ripped off after this agreement after Trump. Such actions seem like rash children’s games but have a fatal effect.
Jobs and prosperity thanks to the agreements
The alliances, some of which were created with great effort, are now of no value. These agreements have had a considerable advantage for the global economy in recent years. The trade, the mutual purchase and sale of products, was built on this foundation, not only between Germany and the USA with an annual trade volume of over 100 billion euros.
Europe and the Asian countries also benefit from these relationships, the Middle East with its huge oil reserves is an excellent business partner. Jobs and prosperity were created, from which broad sections in all countries benefited.
With this new tactic, the termination of trade agreements, Trump is not only against Europe but also against countries like China, Japan, and Russia. The Europeans who are now at disposition due to the close relationship with the United States have a lot to lose: jobs and economic growth are now at risk.
The Europeans have had a shock trauma in the past few weeks, but now they are working. French President Emmanuel Macron in particular, together with Angela Merkel, is taking control of the action. Together with the Europeans, China and Russia, he wants to forge a trade alliance to show the United States that Trump’s isolation tactic will not work.
Agreements are a long way off
However, the negotiators must not lose the will to continue talking to the US about a way out, and must not let the contact break off. The newly forged alliance must now stand closely together and must not go it alone or be provoked.
Germany, as the largest economy in the European Union, is likely to face the biggest bloodletting if all efforts within the new alliance are to no avail; in the end, a new financial crisis could hold the world in suspense.
The Chinese and US business delegations negotiations were unable to report any significant success. The agreement is still a long way off, as the US delegation has brought in an extensive list of demands.
According to American ideas, the trade deficit with China at this year’s level is expected to shrink by at least $ 200 billion by the end of 2020. In return, China wants to end the US investigation into IPR violations. However, the Middle Kingdom will bite on granite with this project in Washington.