An analysis of Northwestern University of the United States revealed the main effects that will generate tariffs in the country’s economy and the world. Ben Golub, teacher of the institution, made their assessments public and among the conclusions is to keep the tariffs in North America a longer and worse than that caused by COVID-19.
“This is not theoretical: we saw all this During the Covid-19 supply chain crisis. In that crisis, the congestion of maritime transport was the “tax“. We are imposing ourselves“The professor said. He added that the United States Congress can stop the tariff progress” with a simple vote. “
It was found that Trump is achieving a “poisoning of supply networks and a deterioration of commercial relations”; It is an economic and commercial scar that will not be erased easy in the United States. Golub has signed the opinion of many experts on trade globalization and their cross -border chains.
“The structure of supply networks is modern. Most supply relationships are cross -border. Most of these relationships operate with low margins and high tariffs can paralyze some of them,” he wrote.
An interruption to supply relationships are synonym for degradation. When there is a shortage of supply, according to the institution, there is a general increase in prices. The inflation that the Federal Reserve sees in the near future, was also enunciated by the Northwestern University.
“Markets intuit that devastating disrupts and sequelae are real. And they also do not believe that relocation will solve all this, for a simple reason: These supply chains are too complex to relocate them, and relocation is slow and very expensive“Golub said.