He first took the United States on a collision trajectory with China. Then he came for the rest of the world.
He crashed in the financial markets and now Donald Trump gently pressed the brakes all week.
World economic decision -makers have been completely traveling in recent months.
Many of them felt a little uncomfortable when they got off the plane at Washington DC for annual spring meetings of the International Monetary Fund (IMF).
It was their opportunity to speak. To develop strategies, strengthen alliances and understand their next movement.
Rachel Reeves was in the mixture. While the whole emphasis was placed on an American trade agreement – And she should meet her American counterpart on Friday – The Chancellor was also there to meet her allies G7 and G20.
The countries of the world are impatient Mr. Trump to reduce his prices But they are also looking at each other, reflecting on the appearance of the world in the future and if the United States is a reliable long-term partner.
This was obvious to a conversation with Paschal Donohoe, Minister of Finance of Ireland and president of the Eurogroup.
He told Sky News that Irlande, an economy very oriented towards the United States, diversified.
That being said, it was “more optimistic than some” than a high level of commercial integration would prevail well in the future.
“What I think is very possible is that the structure of this globalization could start to change,” he said.
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This changing structure could include a rejection of the Chinese China growth model focused on decades.
Since he joined the World Trade Organization in 2001, China has pumped cheap products in the world economy, which makes it much more than it consumes at home.
Poor countries around the world have adopted a similar approach to development, but the US Treasury Secretary in the United States said on Wednesday at the TMI of the IMF that he was “absurd” for multilateral institutions to continue to treat China as a developing economy.
He called for a “rebalancing”.
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It is recognized among the world leaders that some of Mr. Trump’s grievances are reasonable.
They believe that his approach is bad, but in interviews, they are now talking about the negative consequences of commercial imbalances and globalization – the impact on communities and the undervaluation of wages.
This was not the case a few months ago.
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Ms. Reeves went a little further. On Wednesday, the Treasury announced its intention to tackle the spill of cheap products in the United Kingdom – undoubtedly intended for China.
She announced an examination of customs treatment with low -value imports.
Currently, goods evaluated at £ 135 escape duty. The United States has already taken measures.
In an interview with Sky NewsShe said that she was acting in “the national interest”, but she is also looking for common ground with the Americans, because she is looking for an agreement that ensures a reduction in prices.
Addressing the American media on Thursday, she reiterated her common concerns: “I absolutely understand the concerns of the United States concerning imbalances in the trade in the global economy, in particular with regard to China which manages significant and persistent trade surpluses with the countries of the world, including the United States and including the United Kingdom.”
The IMF too. While the fund strongly retrograded global growth forecasts, it failed to openly criticize the American president.
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Kristalina Georgieva, Director General of the IMF, spoke of a trusted erosion between countries and “concerns about the unequal distribution of economic integration gains, its impact on international labor division, the security of the supply chain and global imbalances”.
So Trump forced decision -makers to change their priorities.
At the very least, he brought a long -standing flow problem. The world is thinking differently of China now.
The United States also shows signs that he thinks differently. After a deadly force test with the bond markets, Mr. Trump brought back his rates from the Liberation Day.
The administration has softened its language, claiming that it wants a reform and work with the institutions.
The president said the prices could decrease considerably on China.
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However, a lot of damage has already been caused – not only its policy of erratic prices, but also its attack on institutions, including the American federal reserve.
The world is now thinking differently in the United States too, just like markets.
Investors dive normally in American assets – public debt and dollar – during troubles, but Mr. Trump’s declaration made the merchants made the opposite.
There are signs that the world loses faith in the ultimate status of the United States.