Macroscope | How Donald Trump’s ‘America first’ policy could trigger an earthquake in the global economic order
David Brown says a new age of US unilateralism is putting world economic growth at risk, with the BRIC bloc particularly vulnerable
The adage says that when the US sneezes, the rest of the world catches a cold. It is also said when the US shines, the rest of the world basks in its glow. When the US does well, the global economy generally enjoys the balm of stronger growth and faster world trade flows.
But now, “America first” is defining a new yardstick for an inward-looking US. Trump wants faster US growth, more domestic jobs, less import-swamping from America’s trade rivals, lower interest rates, a weaker dollar, and a farewell to multilateralism unless it is on US terms. No matter that head-to-head diplomacy, political confrontation and the threat of a world trade war is tipping global stability over the edge.
A new age of US unilateralism has begun. World growth is suddenly at risk.