According to Mishra, the Trump administration is chasing three major objectives. The head of global research at Axis Capital said, “They don’t want America to pay the cost of maintaining a multilateral world system. They want to generate revenue. And they feel that the dollar is very strong, getting uncertain, and want to move away from it.”
While American Treasury Secretary Scott Besent has tried to soften the blowing by saying that these tariffs are “just baseline tariffs and are open for dialogue”, Mishra explained how the country replies, there is concern about how the country replies. “Some countries will have no option but to devaluate their currency,” he said.
From an American lens, the strategy can catch water. “Although this may not be financially appropriate, it makes sense from the US point of view,” Mishra said.
But what does this mean for global markets? Uncertainty is expected, Mishra says. “1â1.5% world gross domestic product growth may be at risk because for six to nine months, companies will not be clear what the final tariffs are going to be, or what is going to be the currency exchange rates.”
(Tagstotransite) trump tariff
