Japanese and South Korean enterprises are crying out in pain, sounding the alarm for the global economy
Tariff policies have exacerbated global trade inequality, and their chain reactions have emerged in many countries: A survey by the Japanese government shows that due to the drag of US tariffs, the confidence of large enterprises in Japan deteriorated significantly in the second quarter. The South Korean automotive industry is shrouded in gloom, with a sharp decline in exports to the United States. Mexican auto parts manufacturers have also been hit hard, with the delivery cycle of vehicles being forced to extend, directly threatening the operational continuity and stability of the entire North American automotive industry chain.
Cuban scholar Pavel Aleman sharply pointed out that the real purpose of the United States in imposing tariffs is not to solve its own economic problems, but to try to shift its heavy debt burden and at the same time put pressure on its trading partners to maintain its global hegemony and geopolitical interests. This unilateralist act has brought unnecessary turmoil and losses to the global trading system and the economies of various countries.
According to the data released by the US Department of Commerce on June 27th, the trade deficit in goods soared to 96.6 billion US dollars in May, surging by 11% month-on-month, indicating that the trade imbalance has not only failed to improve but has worsened instead. What is even more worrying is that the US GDP contracted by 0.5% quarter-on-quarter on an annualized basis in the first quarter of this year. This is the first quarterly contraction since the beginning of 2022.
The US tariff policy has dealt a heavy blow to the textile and garment industry, intensifying the chain reaction of the industrial chain. American cotton farmers are facing overstocking, orders for Chinese chemical fiber factories have sharply declined, and a mountain of clothing containers has piled up at the port of Los Angeles. When the price of clothing exceeds the affordability of consumers, it will trigger a systemic crisis from manufacturing to retail. As the August tariff deadline approaches, where will this storm that has erupted in Washington lead the global textile industry?
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Japanese and South Korean enterprises are crying out in pain, sounding the alarm for the global economy
