US trade battles with China and other US allies coupled with hardline immigration policies can bring US down towards recession and destabilize world markets. To boost the mid-term elections ahead Trump is focusing on hardline approach towards trading allies and immigrants and these policies are causing ripples globally.
Trumps tariffs have drawn retaliation from Europe, China, Canada and Mexico.
Mr Gary Cohn, ex national economic council director for Trump said that the tax reports introduced by Trump administration previous year and its deregulatory agenda were having desired effects on the economy but the policies, trade and immigration were confusing the system.
Harley Davidson, motorcycle manufacturer said that it will move production out of US and Dow Jones Industrial Avg tumbled over renewed fears from the new trade restrictions on China, according to the report.
Trump has suggested that the illegal immigrants should be sent back immediately without going through any legal process.
In the report, Mr Ethan Harris, economist, quoting Bank of America Merrill Lynch said, “A decline in confidence and supply chain disruptions could amplify the trade shock, leading to an outright recession.”
A survey of manufacturing purchasing managers from IHS Markit, in the report showed a closely tracked gauge
of the factory sector’s health dipped to a seven-month low of 54.6 last week.
Business groups from the US chamber of commerce have warned that trade fights can derail confidence and slow economy.
