The presidency of Donald Trump could mark the breakdown of global trade and the division of the world into trading blocs based around currencies – forcing Australia to choose between the United States and China. With agricultural growth surging in Australia according to the latest national accounts, Every will suggest that, as Trump pushes a more protectionist trade policy, Australia and the world will face a very different global trade landscape. Trump presidency poses threat to global economy, warns Fitch Read moreEvery says Trump is approaching the United States as a businessman and that, in the business world, it makes sense to sell more than you buy. “If the US doesn’t run a huge trade deficit, the world trade system as we understand it today breaks down.”Every believes it is highly unlikely that the world can expect to just “ride out Trump”. Every said policymakers needed to be realistic and accept that selling the free trade message did not solve the underlying problems.

Source: The Guardian March 06, 2017 05:59 UTC