Many alarmists are ringing the bell on President Trump’s recent announcement on Trade Wars. Some speculate that it will severely hurt our economy and therefore our supply chain and some think it won’t. It’s time to face the truth – the U.S. economy doesn’t make up such a large percentage globally and in fact, has been on the decline since World War II ended.
The U.S. and EU economies are about tied at 20-percent of world GDP each, and Asia has over 35-percent of world GDP, and it is increasing. Any threat to use tariffs as an economic weapon will have limited effect because we don’t hold the same power we used to.
