American economist cites concerns in the sector if Trump is elected

The results of the elections in the United States should be known by this Wednesday afternoon (6). Kamala Harris and Donald Trump are the main competitors to reach the White House. With considerable growth in recent polls, the former president is a controversial figure and, at times, considered a risky option. Professor in the Department of Economics at the University of California at Berkeley, Barry Eichengreen is one of those who is concerned about the Republican's possible return.

“The widespread and significant increase in import tariffs on goods purchased by the US from around the world and the mass deportation of immigrants are at the top of the list of most worrying proposals in former President Donald Trump's government program”said Eichengreen in an interview with the newspaper O Globo. In addition to his work as a professor, he was an advisor to the IMF and president of the American Economic History Association.

Consequences

Regardless of the winner, Barry Eichengreen comments that the election result will have an effect. If Trump wins, the deportation of immigrants appears as an agenda, in addition to the imposition of tariffs. The latter defended by the candidate due to the possibility of protecting the internal market. For the professor, these are disastrous options for the country's economy. “And bad things that happen in the US don't stay in the US, as we say about what happens in Las Vegas. The world economy would also be negatively affected.”he adds.

Kamala's victory also changes the current scenario, although it is a less radical change for Eichengreen. It seeks to tax large fortunes to prioritize welfare programs. On the other hand, the budget deficit would grow, and the current situation is already quite compromising.

_{Joe Biden's deputy, Kamala Harris tries to become the first female president of the USA (Photo: reproduction/@Ssnyder1835/X)}

Global impact

Aiming to stop the advance of Chinese products in the country, Donald Trump promises high import taxes on items from the Asian country. And this, according to Barry Eichengreen, is one of the reasons that would affect deglobalization.

“One thing guaranteed to accelerate the process of declining dollar dominance would be to infringe on the independence of the Federal Reserve or to appoint a Fed chairman who would submit to the president's wishes. Trump has moved away from the first of these two alternatives, but one can imagine he would move forward with the second.”points out Eichengreen.

Eichengreen says that his biggest concern is precisely the rise in tariffs and the severity of the deportation of illegal immigrants in the United States.

Featured Photo: Donald Trump tries new period as president of the USA (Reproduction/@ploughmansfolly/X)