Trump tariffs will not affect Peru much like other countries

Our country exports to the US less than what this country exports to ours, explains

Pablo Carranza

– What impression of the recent decision of the president of the United States, Donald Trump, to impose tariffs on several countries of the world, including Peru?

Look, I believe that the immediate consequences will be very hard for all countries. This is really a very strong blow for international trade, which was governed by the roads of free trade and free trade agreements that are subscribed among many countries of the world, including Peru, which has more than 25 free trade agreements. So, it really is a very strong and fortunately blow that the United States exports more to Peru than Peru exports more to the United States, that is, perhaps the consequences for Peru are milder and also that we do not export many manufactures, what we export are primary products and agroindustrial products. Then, perhaps it does not affect so much, but, in any case, by affecting these measures that Trump has taken for world trade, anyway, it will affect Peru, because the entire conglomerate, the whole of the countries will be affected with these tariffs,

– How does the international scenario disrupt this?

Obviously, this is a distancing from the United States with its traditional forces, which are mostly European countries, but also with countries that are not a partner, as with China. This is a very very large blow to trade with China and trade with many countries in Asia-Pacific. Many of which are not industrialized countries, nor are rich countries. Of course, they say that the interests of the United States are first, but also the world because it is a conglomerate. At this time, the United States as the main power of the world, it must also take care of its relations with other countries, take care of their relations with the allies, take care of their relations with the poorest countries. So we are really stunned with that drastic measure,

– How can Peru react to it?

I believe that Peru should react with caution, isn’t it? We are a power that is actually in the western hemisphere, in the United States hemisphere, and therefore we must react with caution, calmly and study our position well and the defense of our interests, but I believe that in this case there are not many adjectives, but rather a clear policy of free trade that is very favorable for Peru. This free trade agreement has allowed an increase in all our agribusiness, of all our textiles. Anyway, I think you have to react calmly, with moderation, above all, seeing the commercial part. How we can face this commercial war that has unleashed the United States.

– You were Ambassador of Peru in the United States in Trump’s first government. Do you think these measures enjoy sufficient consensus throughout the American political class?

Well, obviously the products are going to raise, what this will cause is that foreign products will be very expensive, and it will try to promote national products, but the American consumer is the great consumer in the world, It has many options for any type of input, any type of food and then all that will be reduced because foreign products will be much more expensive than national products, and the United States is not that it produces everything that the American consumer is accustomed. Then there will be a restriction, we are going to enter a process of lower consumption, perhaps a recessive process, because what Trump wants is to lower interest rates because the US debt is also very high. Then, when lowering interest rates, lower international interest rates and interest that the United States has to pay for its debt, because, it goes down a lot. What I could tell him is that it is not an improvised measure, all that is something that Trump has been thinking for a long time. It is one of its campaign slogans, that is, the measure is not surprising, what surprises is the intensity of the measure, things so strong.

– Can it be ruled out that Donald Trump can cause World War II?

I discard it absolutely, absolutely. But, this if destabilizes the world, generates grudges, generates rejection, but it is not that this will produce a war. In addition, on the other hand, Trump is negotiating with Russia La Paz in Ukraine. So, I see no motivation to worry about an armed conflict.