Trump trade tariffs and higher borrowing costs are causing problems from Turkey to ChinaDonald Trump’s trade tariffs are causing tremors in global markets. Emerging economies from Turkey to China are finding it more expensive to export to the US. Investors who put their money in secure havens after the 2012 Greek crisis are nervous again. The FTSE Emerging Index of stocks in the developing world tumbled final week,taking the decline in its value since the beginning of the year to more than 20%.
It is not only the US president troubling investors though. The country’s central bank, the Federal Reserve, and has quadrupled interest rates in the final couple of years. Countries that borrowed heavily in dollars to fund their growth face the prospect of paying a heavy price in additional interest payments. It is a crippling bill that has already forced Argentina to seek help from the International Monetary Fund. Others could follow:Continue reading...
Source: theguardian.com