Trump threatened to stop trade with any country that does business with North Korea, and it'd be a disaster for the US economy
Pool/Getty Images
"The United States is considering, in addition to other options, stopping all trade with any country doing business with North Korea," he tweeted Sunday.
Though highly unlikely to happen, that option would be nothing short of a total disaster for the US economy and the greater global economy as a whole.
Many countries have trade relations with North Korea at some level. While China dominates the trade market with North Korea, a number of other prominent US trading partners have a minimal economic relationship with the country.
At least 10 of the top 30 trading partners of the US do some level of business in North Korea. Those 10 nations include five of the top 10 US trading partners, and two of those are in the top three. Ending all trade with those nations would lead to the halting of roughly $1.6 trillion in total trade, according to 2016 data, and of more than $520 billion in US exports.
China, the nation Trump appeared to be most closely calling out in the tweet, is the largest US trading partner, with roughly $600 billion in trade happening between the two countries on an annual basis. Other countries that would be affected by such a move include India, Mexico, Saudi Arabia, Chile, Brazil, France, Germany, Thailand, and Russia.
With those consequences obvious, the threat hasn't been taken too seriously.
"We think there is little prospect of Trump carrying out his threat to 'stop all trade with any country doing business with North Korea' given that the US imported $479 [billion] of goods and services from China last year," international economist Andrew Kenningham wrote Tuesday in a Capital Economics note.
"But as 86% of North Korea's exports go to China, the US may impose additional targeted sanctions on Chinese entities and individuals which are doing business with North Korea. This in turn could provoke some retaliation from Beijing."
- Market recap: Valuation of 6 of top 10 firms declines by Rs 68,417 cr; Airtel biggest laggard
- West Bengal Elections: Rift among INDIA bloc partners triggers three-cornered intense contests
- Angel Investing Opportunities
- Poonch Terrorist Attack: One Indian Air Force soldier dies, five injured; Patrolling intensifies across J&K
- The Role of AI in Journalism
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market