Global economic factors affecting US are among the main concerns of analysts, investors and officials in Washington. This is because the world is all connected and any international instability, whether commercial, monetary or geopolitical, generates immediate effects on inflation, jobs and growth in the United States.
Anúncios
Today you will know all the details of the latest events around the world that have impacted the financial market, including that of the United States.
Based on recent facts and strategic data, we will help you understand why you should follow the international scenario, being able to predict risks, in addition to protecting assets and keeping the US globally competitive.
Why should the U.S. pay attention to what is happening in the world?
The United States, as one of the world’s largest economies, is deeply integrated into the global financial and trade system.
This means that events anywhere on the planet can directly affect its growth, inflation, employment, and financial stability.
In fact, international conflicts can generate increases in oil prices, affecting the cost of energy in the US.
On the other hand, the decisions of foreign central banks, such as the European Central Bank or the Bank of Japan, directly influence capital flows, exchange rates, and U.S. bond yields.
Anúncios
In addition, global supply chains in manufacturing, technology, and even the agricultural sector can be disrupted by natural disasters, wars, or protectionist policies, impacting American businesses and consumers.
It is worth noting that ignoring these external signals will result in internal economic policies that are misaligned with reality, causing you to lose money.
Anúncios
Therefore, carefully monitoring what happens in the world is not only prudent, it is strategic to preserve the competitiveness, economic security and well-being of the population of the United States.
Main Global economic factors affecting US
1. Trade around the world changes jobs in the United States (Global economic factors affecting US)
Changes in global trade have direct effects on the labor market in the United States.
When the government imposes tariffs, as the Trump administration did on steel, aluminum and automobiles, it protects domestic industries in the short term. However, it also increases costs for companies and consumers. In addition to reducing exports and provoking retaliation from trading partners. The result? Jobs can be created in one sector, while others lose competitiveness and cut jobs.
It is worth mentioning that the 51st G7 summit, marked by the absence of a joint declaration, illustrates this scenario well.
This is because by rejecting the multilateral consensus, the U.S. government has signaled a preference for unilateral actions, such as increasing tariffs, which strain trade relations and bring uncertainty to U.S. companies that depend on global production chains.
It is worth noting that trade conflicts directly impact foreign investments. Harming sectors such as agriculture and technology, which depend on foreign markets to grow.
2. A tariff war if it intensifies
The tariff war started by Trump has intensified over the past few months and is already having gigantic impacts on the American and global economy.
In March, by applying 25% tariffs on exports from Canada and Mexico (except energy, which received a 10% tariff). With this, the government provoked immediate responses from these partners, marking the beginning of a protectionist escalation.
It is worth noting that in the following months, tariffs were increased for automobiles. Auto parts and products from the European Union, ranging between 10% and 25%.
The EU did not stand still and imposed tariffs on €21 billion of American goods. Affecting sectors such as agribusiness, technology and clothing.
Financial markets reacted negatively, with the S&P 500 down 1.8 percent after the tariffs were announced.
3. Israel-Iran conflict leverages global energy prices (Global economic factors affecting US)
The conflict between Israel and Iran in June triggered an escalation in global energy prices.
Mutual attacks between the countries have raised the barrel of Brent by as much as 11%, putting pressure on transportation and energy costs in the United States.
It is worth noting that this increase was reflected in the increase in the price of various consumer goods. Affecting both companies and American families.
It is important to note that the financial market reacted with volatility. Especially in stocks and commodities.
Investors, in search of protection, have migrated to assets considered safe, such as gold, dollars and US Treasury bonds.
4. Dollar fluctuates and worries investors
During the 51st G7 summit, the Federal Reserve decided to keep the interest rate stable. While the European Central Bank and the Bank of Switzerland opted for reductions. This mismatch between policies strengthened the dollar, which is already up 9% in the year.
With the appreciation of the American currency, US products have become more expensive abroad, thus putting pressure on exporters.
At the same time, this appreciation makes imports cheaper. Especially in countries such as Japan and the European Union, generating imbalances in the trade balance. Thus affecting the competitiveness of American companies in the international market.
5. Semiconductors in Taiwan dominates the market
Taiwan has become a key player in the global semiconductor industry, with companies such as TSMC dominating the production of advanced chips used in electronics, automobiles, and military equipment.
Currently, more than 60% of the world’s most advanced semiconductors are manufactured in Taiwanese, generating a strong international dependence, including on the United States.
This adds to growing tensions between China and Taiwan. Thus, a conflict could disrupt global supply, affecting everything from smartphone production to American defense systems.
In response, the U.S. has been taking steps to reduce this dependence.
The government passed the CHIPS and Science Act, allocating billions of dollars to stimulate domestic semiconductor production and attract manufacturers like TSMC itself to build factories on American soil. Behind this movement, the United States seeks to ensure technological security and protect critical sectors of the economy.
Conclusion
Global economic factors affecting US are direct vectors that impact the prices paid by consumers, the strategies of companies and national economic policy.
From trade tensions to oil price shocks and dependence on foreign semiconductors. The United States needs to maintain constant vigilance over the developments of the international scenario.
In an interconnected world, a country’s economic strength depends on its ability to adapt quickly to global change.
For the U.S., this means diversifying supply chains, preserving monetary stability, and protecting important sectors in the face of external crises.
It is worth saying that even in difficult times it is possible to achieve good financial results if you invest right. Given this, see now the comprehensive investing in the stock market guide.