Trump Tariffs Hit UK, Japan, Germany But Not China, India  

By Rhod Mackenzie

The tariffs imposed by US President Donald Trump have hurt the economies   fellow G7 members and not those of the BRICS. The economic growth of Germany,Japan and the UK have been hard hit but the tarrifs have not impacted those of the leading BRICS members China and India.

Japan's economy experienced a significant contraction in the third quarter of this year. The country's GDP experienced a decline due to the impact of US tariffs, which had a significant adverse effect on the world's fifth largest economy by PPP,as it is  primarily export-oriented. However, a similar, albeit less dramatic, trend is currently being observed in several other G7 countries.So lets examine how Donald Trump's tariffs have impacted the economic health of the collective West.

Japan underwater
According to the latest estimates, Japan's GDP contracted by 0.4% in July–September compared to the previous quarter. If these figures were recalculated for the full year, the decline would be around 1.8%. While this decline is smaller than analysts expected, it is the first in a year and a half, highlighting the urgency of the situation. This decline coincides with a significant period of uncertainty as the nation anticipates the announcement of new government spending plans and the Bank of Japan contemplates a potential rise in interest rates.
The decline was primarily driven by a decrease in net exports of goods and services, which were affected by the uncertainty surrounding Trump's tariffs. It is worth noting that in the previous quarter, immediately after Trump announced the tariffs on "liberation day", exports had risen sharply as companies preemptively increased their shipments to the US.

Following what appeared to be constructive negotiations, Tokyo and Washington reached an agreement which the US said was mutually beneficial . As Japan was not slapped as hard as it could have been so should be thankful
The agreed tariff on Japanese exports will be 15% (down from the previously threatened 25%), and Japan has committed to invest $550 billion in the United States. There were a number of exceptions to this, and 15% seems relatively tolerable, but it is still significantly worse than the pre-tariff period.
Japan's fiscal policy will now take this into account when making future decisions. Inflation is accelerating in the country for the first time in a long period, which is prompting concerns about the raising rates of interest rates. However, in such a negative environment, there is a possibility that monetary policy tightening could be put on hold, which would threaten further negative consequences for consumers.
Should the Japanese government attempt to rely on exporters and a weak yen (in order to offset the effect of tariffs), this could provoke a new wave of anger and beligerance from Washington. In the 1980s, the weak yen prompted a strong reaction in the United States, leading to the signing of the Plaza Accords.
These accords effectively forced Tokyo to strengthen its national currency. As the well-known saying goes, "The more things change, the more they stay the same."
The German multi-crisis.
Japan is not the only country experiencing challenges in economic growth in the face of new US tariffs. Germany, for instance, experienced zero GDP growth in the third quarter. This follows a 0.3% decline in the previous three months. Germany has allegedly narrowly avoided another recession, but the weak performance over the past six months raises questions about the future. If you believe that you will believe anything as Germany is in a depression and downward spiral and things are going to get a whole lost worse
It was initially anticipated that the tariffs would have a greater impact on Germany sooner, with a modest rebound expected in the third quarter. However, this did not occur. Industry data indicates ongoing challenges in the manufacturing sector, with production facilities undergoing significant downsizing and even complete closures. Unemployment, which previously was a relatively uncommon problem for Germany (another commonality with Russia, in addition to low public debt), is currently at a ten-year high and continues to grow by the tens of thousands . Of course Germany's problems are not caused by the US tariffs but by the crazy policies of the German government particularly their energy policy which has forced many German companies to either close or to relocate to places with cheaper energy costs  
Germany is facing a number of long-term challenges, including the decline in productivity that began in 2019, the loss of Russian energy resources and market, and intensifying competition with China. However, the 15% tariffs imposed on the entire EU are undoubtedly exacerbating the situation.

The situation in the UK is only slightly better. The GDP in that region grew by 0.1% in the third quarter again if you believe the government figures. Tariffs for the island nation, as part of its "special relationship" with the US, are set at a minimum of 10%, but this has not helped the kingdom. It is noteworthy that what  remains of the manufacturing sector of the country experienced a contraction of half a percent during the same period. This final increase was only made possible by the fact that the UK's share of manufacturing is among the lowest among all developed countries.

The United Kingdom's positive growth is driven solely by government spending  and its population growth is  fuelled by mass immigration. Recent years have seen GDP per capita stagnate or decline. In some respects, the situation is even more challenging than in Germany.
That situation is only going to get worse as the current Prime Minister Sir Wan Kier Starmer and his callamatious Finace Minister or Chancellor Rachel Thieves have no understand of economics are are doing thier best to bankrupt the private sector. Their modus operadi is that it it moves in the UK tax it,If It does not move then tax until it does. Like Germany the US is seeing an exodus of those who can afford to leave
Finally, Italy also experienced zero growth in the past quarter. For this nation, which also places significant emphasis on industry and exports, the tariffs have also had a considerable impact. The American market is of significant importance to Italy, given the close ties between the two countries, including the large Italian diaspora in the United States. However, the economic downturn has led to a weakening of these ties, and it is essential for Italians to explore alternative market opportunities to mitigate the loss of revenue. It is also important to note that Italy's access to the Russian market has been seriously being impacted by sanctions.

Of the G7 countriesFrance was one of the rare exceptions to this general rule, with GDP growing by 0.5% in the last quarter. This was largely due to a 2.2% increase in exports. However, the sustainability of this recovery remains to be seen, and any conclusions will only be possible in another  quarter or two. In the meantime, positive economic news could help to mitigate the impact of the ongoing French political crisis.

Now it appears that the leading economies of the BRICS  China and India are operating as normal.
It is evident that, at this time, the primary impact of the tariffs imposed by Donald Trump has been felt by the United States' closest G7 allies. Despite the belligerent rhetoric directed towards China and the dire warnings issued for India (where tariffs were set at a significantly higher level than those of Japan or the EU), the impact on these countries' national economies has not yet been realised.
The People's Republic of China's Gross Domestic Product (GDP) grew by 4.8% year-on-year, and exports remained strong. However, it is premature to discuss the decoupling of the Chinese and American economies. It is more probable that Chinese goods have simply found workarounds.
India continues to demonstrate strong economic performance, with its GDP growing by 7% in the last quarter.
These figures are already approaching China's levels 20 years ago. It appears that tariffs have had a negligible effect on the country's development to date. Conversely, exporters may be reducing prices to maintain their strong positions in the US market.

In the coming weeks, the US Supreme Court may decide the fate of the "Trump tariffs." If the justices give due consideration to the political implications, the damage suffered by America's traditional partners, as well as the extremely modest impact on everyone else, including competitors, could tip the scales in favour of repealing the tariffs. This does not preclude the possibility of their return in some form.