World’s economic war and its consequences for Ukraine

The US President Donald Trump has announced that the United States has imposed import duties on steel and aluminum in the amount of 25 and 10%. This increases the risk of a trade war with the European Union and China, reports “Investor”.After meeting with American steel and aluminum producers Trump noted that formally the introduction of duties will be announced next week.

“We will revive our production of steel and aluminum”,

–  he said.

The president’s statement was like a bomb blast. The world political and economic establishment made separate statements and comments. The leaders of the WTO, the EU, and individual countries have already called Trump’s actions “stupid and hostile”, “obstacles to free trade.”

In particular, German economist Brigitte Zypries said:

“President Trump tries to play a game in which there can be no winners. Introducing more and more customs duties on more and more goods can ultimately endanger a decade-long cancellation of customs barriers, free trade, and prosperity”.

The EU leaders are preparing their own package of goods from the US which will be subjected to duties. Thus, Trump launched the world economic war. Protectionism policy will lead to economic decline and slowdown of economic development.

History has a similar case which is also associated with the United States. After the crisis of 1929 and the introduction of protectionist policies, the world economy shrank threefold.

How will this turn out for Ukraine? Unlike the European Union countries, we cannot respond to counter duties, but US restrictions will hit our economy hard. And it will be this way as long as the growth of the Ukrainian economy is directly dependent on the export of our metal.

At the same time, Ukraine needs a consensus between the United States and the EU in order to exert pressure on Russia. Everyone in the world economic war will be affected. Only those who can quickly rebuild in accordance with the new conditions will survive.

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