A rebalancing is happening in the global economy with the adoption of protectionist policies amid rising tensions between the U.S. and China, writes RSM US Chief Economist Joe Brusuelas in the March issue of The Real Economy.
Countries are looking out for their own interests amid these mounting trade tensions. Call it the new mercantilism—rooted in tariffs and trade protection—as nations embrace tariffs to protect their industries, Brusuelas writes.
Additionally, the U.S.-China trade tensions are reaching other nations, further intensifying the trade conflict. Investors, firm managers and policymakers should expect an increase in currency manipulation as other economies seek to gain competitive trade advantages.
