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America the Unstable
Markets are signalling their response to the emerging market characteristics of the United States under President Donald Trump.
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US President Donald Trump has finally ended America’s exorbitant privilege, says the writer.
PHOTO: AFP
Rana Foroohar
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America under Mr Donald Trump is an emerging market. That’s my takeaway from the last few days of tariff chaos and its fallout.
When I first raised this idea in October 2024, I pointed out that emerging markets are often characterised by uncertain economics, corrupt politics, institutions that are too weak to enforce democratic norms, violence and social polarisation. The US has been heading fast in that direction since 2016, for reasons we know all too well, though asset prices and borrowing rates hadn’t yet reflected it.
