Washington: US President Donald Trump made an unprecedented order to all US firms operating in China to move out and either find alternative manufacturing sites or return to the US.
“Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies home and making your products in the USA,” wrote Trump on the social media platform Twitter.
Business groups and associations in the US immediately issued public statements condemning the comments made my Trump.
“It’s impossible for businesses to plan for the future in this type of environment,” said David French, vice president of the US’ National Retail Federation on Friday.
“The administration’s approach clearly isn’t working,” added French. “Where does this end?”
Economists say the trade war pushing the global economy due to uncertainty Trump is creating in the global markets.
A recent Bloomberg report estimated the global economy will lose nearly $585 billion in value in 2021 due to the ramifications of the ongoing trade war.
“There’s no lower bound to how bad this could be if we escalate the trade war,” said Austan Goolsbee, economic advisor to former US President Barack Obama. “We are already teetering on the edge of recession.”
“If we go onto a full blown trade war between the world’s two biggest economies we will both have a recession — there’s no doubt about it,” warned the economic advisor.