Economic Strength’s Limits: Trump's False Promise
The US administration has been using economic measures to exert pressure on other countries, but these actions may not be as effective as expected. Treasury's intervention in long-term interest rates and direct threats against Iran highlight the limits of this approach.
In recent days, the US government has taken a series of measures to exert economic pressure on various countries. Tariffs added to Canadian goods, threats against Iranian partners, and interventions in the bond market reflect an economy of force approach that may have its limits. For instance, tariffs on imports from Canada caused only minor ripples in the markets, while direct threats against Iranian companies have not yet yielded significant changes in international relations. Additionally, Treasury's intervention to control long-term interest rates indicates recognition of these strategy’s limitations. Even with their large economy and financial prowess, the US may not be able to force compliance from other nations without causing significant collateral damage for much longer. The trust in international relationships is a delicate currency being tested by Trump, but with increasing risks.
Source: The Guardian Business