Discussion paper: the world tariff conflict seen through monetary policies and exchange rate strategies

Resumo

The following discussion paper aims clarify tariffs issues in the international trade, the constraint and issues to be solved aiming to reduce the trade conflict between the U.S., Europe and BRICS. The impact on general trade encompass trade balance but has also financial and monetary issues. The currency has three function: medium of exchange, unit of account, and stock of value. In other word it is a product and a service itself and in the actual global trade there are distortions on trade flows (are not homogeneous) and on currency values (dollar dominance). Thus the change in the actual system impacts on many variables of the trade and PIBs, is not only a matter of products and services exchanges or tariffs but a complex mix of all of them. The result of the discussion shows how strategies are related to all other partners strategies in the international trade. That way it is impossible to negotiate only limited politics and tariffs agreements or bilateral negotiations, but, to bypass conflicts, a new form of international trade and international agencies are needed. The main economies have to cooperate and compete in the same time.