How The New Green Trade War Will Stunt The Global Economy

How The New Green Trade War Will Stunt The Global Economy
Photo by Thiébaud Faix / Unsplash

The trade war between nations is heating up and the old mercantilism of the past is making a comeback. Governments are throwing money at green energy, providing subsidies to companies who promise to produce renewable sources of energy. This trade war promises to be far more complex than those in the past as it involves not just goods and services but also intellectual property rights and technological advancements. The trade war could have implications for world trade and could disrupt global markets if allowed to escalate without resolution. It's important that we find a way forward quickly before the trade wars spiral out of control. Let's hope our leaders come up with a solution that works for everyone involved.

This trade war has been going on for some time now and shows little signs of slowing down. The economic consequences could be dire if trade disputes between nations cannot be resolved quickly and amicably. Already, countries are slapping tariffs on each other’s goods and services to gain the upper hand in trade negotiations. This trade war is a clear attempt by some governments to protect their domestic market from foreign competition, while others appear to be looking for leverage against perceived unfair trade practices.

It's a precarious situation that could have long-term implications for the global trade system.

At this point, it's unclear how this trade war will ultimately play out. It may be that trade disputes will lead to more cooperation between nations as we strive for mutually beneficial trade agreements. Or it could end up being an all-out trade war with devastating consequences for many countries involved. Whatever the outcome is, one thing is certain: trade wars are bad news and must be brought to an end quickly if we are to protect our economies from further disruption in the near future.

This trade war has already had serious economic impacts on countries around the world. Prices of goods and services have risen as trade tariffs have been imposed, making it more difficult for individuals, businesses and governments to purchase what they need. Businesses are suffering losses due to the trade war, which could ultimately lead to job losses in many countries.

The trade war between the US and China, as well as other countries, is a major factor that could cause a recession. It affects the global economy in many ways: trade tariffs raise the cost of imports, reduce competitiveness for businesses, and put pressure on domestic prices. In addition, trade tensions may lead to reduced investment flows into certain markets and currencies due to uncertainty over future trade relations. This all adds up to increasing chances of a recession – both through direct trade disruption and through further tightening of monetary policy by central banks. The global trade war is certainly something every investor should be aware of when assessing their investments going forward.

It's important to remember that recessions don't happen overnight - they are often preceded by longer-term economic trends that can be seen in advance. As such, it pays to stay informed on the trade war and the potential impacts it could have on global markets. Keeping an eye on a range of economic indicators, such as GDP growth or employment figures, as well as fiscal policy decisions may also help prepare for a possible recession.

Ultimately, trade wars are not just about trade – they are about geopolitics and power. Knowing this will help investors better position themselves for whatever comes next in the trade war saga, whether it leads to a recession or not.

So how do we make money on this?

It means trying to find companies within a country that will benefit from government subsidies and to find companies in other countries that will lose market share. And, remember, we are talking about green energy here.

A back door way to make money on this green energy trade war is to invest in old energy, like oil and nuclear!

I'll be writing more in future articles as this trade war develops.