As the US Congress prepares for the impeachment of President Donald Trump, ripples are sent across the global markets. Every country is watchful of the consequences of Trump Impeachment on his Trade Wars.
Amid the accusations, President Trump faces Impeachment which would directly affect his Trade war. Last week, Speaker of the House Nancy Pelosi announced a formal inquiry for the impeachment of the President. In light of the circumstances that have followed, not just the US Congress or the White House but the whole world is preparing for the proceedings.
The US Dollar is the detrimental factor in the state of the world’s leading economies, hence, every country is cautiously observing how the process of impeachment transpires.
Trump’s Impeachment would affect the Trade War
While President Trump initially referred the scenario as “attempted mockery of his Presidency by the democrats”, the situation is now slowly sliding past his control. Over the last few days, his tweet quotes have essentially been Panic Stricken. Directing his rage towards Republican Adam Schiff, the House Intelligence chairman and the primary face of the inquiry by the House Keeper Nancy Pelosi.
Accusing his accuser, ‘the whistleblower’, is not very presidential on the part of Donald Trump. The current scenario is inferred as a Civil-war-like fracture by journalists in the US. When the media in the US itself is in a situation of doubt and uncertainty, how can we expect the stock markets across the globe to behave normally?
Trump Impeachment Economic Impact
Donald Trump took the United States of America in a trade war against China. A country that can bring existential damage to the US economy. Nevertheless, this didn’t bother President Trump as he continued to bury China under deep sanctions thus triggering a Trade War. The impact was catastrophic, and the current impeachment proceedings are only going to make them worse.
Import tariffs effectively divert dollars from forex markets to the U.S. government and the domestic economy. As a result, the international supply of dollars shrinks, causing the U.S. dollar’s foreign currency exchange rate to rise. The Trump administration has continuously been increasing tariffs on Chinese Imports. Donald Trump has been using sanctions to retaliate Beijing’s own sanctions thus the Trade-War.
Despite the Trade Wars, the US economy has been fairing well under the Trump administration. And the allegations on the President affect the economy inversely.
Impact of Impeachment on China
“As the world’s only superpower, it needs to shoulder its due responsibility, and join other countries in making this world a better and more prosperous place. Only then can America become great again.” Tariffs could not impede China’s development.Communist Party’s People’s Daily.
China want’s to end the Trade War as soon as possible. Recent comments from their delegations suggest the same. However, its highly unlikely that Trade-War between the two countries will end until Trump holds the office. As the talks of impeachments abstract more and more light in the US, the Chinese economy is expected to fair well with the increase in its stock market index.
China is an emerging Asian economy and its exports have recently been declining. Perhaps due to sanctions of the US President. However, circumstantial to the impeachment proceedings, the Chinese Government would like to see Trump removed, though it’s a very long shot and highly unlikely as of now.
Ukraine, Iran, and Saudi – Hopeful for Clarity
Amid the growing tensions in the US Government, several countries across the globe are hopeful of sooner clarity in the facts. The President blaming the Congress and the Congress accusing the President is not something any country wants to witness. Ukraine and President Zelenskiy find themselves in the middle of the heat of impeachment. After all, he was the other half in the transaction with Trump, if there really was one.
Tensions around Iran and Saudi are increasing rapidly over the last few days. If the United States, the world’s superpower, would remain busy in lighting out the fire in their own house, how can they be of any help in lighting out the fires in the world? Saudi has accused Iran of the drone attacks in their country, citing the weapons as evidence. The possible clash between the two countries is highly likely. Perhaps, the world needs its superpower to focus on the issues which demand immediate attention.
Impact of Impeachment on the US Economy and its relations with the Rest of the World.
The US economy has been booming for a long time. In the words of John Forbes, Senior Advisor American Chamber of Commerce, the economy would take a hit in the coming year. In a recent interview with ANC 24/7, John explains how Trump is likely to lose the battle of impeachment yet would survive in the office.
If what John and most of the other dignities are expecting, turns out to be true then this whole formality of Impeachment would go in vain for the Democrats. Though the Democrats were well aware of their situation in Senate, they still choose to take the gamble and risk the fall of markets just to throw some stones at the Republican President.
The United States has good relations with most countries in the world. Bipartisan support towards several countries like Vietnam and the Philippines. Perhaps, all the US allies hope for the situation to ease out in the US Capitol and the White House, as soon as possible. Until then we expect the markets around the globe to experience uncertainty and disorder.