Thailand is one of the countries on the list that has nothing to complain about, as they impose steep tariffs on various imports. Ever wonder why you don't see many Jeeps in Thailand ?
And since this is an exchange rate thread, lets estimate the impact on that.
Firstly, US inflation will go up. It's all very well putting a 49% tariff on countries like Cambodia. But it means the cost of all that cheap imported clothing will go up. American ladies aren't going to switch from spending the day in Starbucks to working in a garment factory either & he's put tariffs on most of the low cost garment making countries.
Secondly, the Fed should increase interest rates to fight this inflation. If done properly, this should strengthen the dollar. Having fewer dollars flowing out of the country to fund imports may help. But as always, a lot of this might be incorporated in current exchange rates.
Increasing interest rates will of course slow the economy down.
The big question is would Trump be dumb enough to interfere with the independence of the Fed ? That would severely reduce confidence in the USD.
