Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen correspondent: An Israeli drone attacked the main road in the town of Harouf, South Lebanon.
Lebanese President: Israeli aggression on Blida took place in aftermath of meeting of ceasefire monitoring committee.
Lebanese President Joseph Aoun asks Commander of Lebanese Army to confront any Israeli incursion into liberated Lebanese territory in the South.
Al Mayadeen's correspondent: Israeli aircraft launch series of strikes on area of Jarmaq, South Lebanon.
Reuters: Afghanistan and Pakistan agree to restart peace talks in Istanbul.
Al-Mayadeen's correspondent in southern Lebanon: Israeli occupation forces withdraw from the Blida municipality building two hours after occupying it, and the Lebanese army enters
Pakistani army: 6 soldiers and 7 militants killed in clash near the Afghan border
Israeli media: Sirens sound in the settlement of Kerem Shalom in the Gaza envelope area
Afghan source to Al Mayadeen: We still believe in dialogue and prioritize diplomatic solutions with Pakistan; though we are ready for all possibilities.
Afghan source to Al Mayadeen: Pakistan purposely obstructed negotiations in Turkey by making unrealistic demands.

How the trade war could expand beyond tariffs: WaPo

  • By Al Mayadeen English
  • Source: The Washington Post
  • 13 Feb 2025 18:34
3 Min Read

The Washington Post notes that although a trade war may have significant consequences on other nations, this is also true for the US, particularly as it is unlikely to be limited to commerce alone.

Listen
  • x
  • How the trade war could expand beyond tariffs: WashPo
    A US flag is seen on an embassy car outside a hotel in Shanghai where officials from both sides talk in 2019. (AP)

Just as military strategists realize that the battle that can begin in one theater can quickly move into another, so can a trade war, as it evolves into something bigger, Peter R. Orszag reported.

In an opinion piece for The Washington Post, he wrote that as the US puts significantly higher tariffs on its trade partners, "regulatory retaliation" is only one way they may retaliate.

Another method these nations may broaden the tariff battlefield is by reducing their holdings of US debt.

As of November, foreign firms owned $8.6 trillion in Treasury securities. This represents more than one-third of the debt owned by investors, excluding the United States government's own holdings. 

Governments and private investors in Japan ($1.1 trillion), the United Kingdom ($770 billion), and China ($770 billion) each own significant holdings.

This makes Treasury markets a prime target if discussions get lengthy. Selling Treasury securities would result in financial losses, but foreign governments may tolerate such losses to put pressure on the US.

Related News

US advances Gaza security force plan amid fragile ceasefire

Trump nuclear test threat risks escalating tensions with China: NYT

If only 10% of the US debt owned by foreign organizations were sold, replacement purchasers for $860 billion in Treasury securities would be sought, which is roughly half of the nearly $2 trillion federal deficit in 2024. 

With debt totaling about one-third of GDP expiring in 2025 and needing to be refinanced, more selling pressure from foreign government creditors offloading their holdings may dramatically raise interest rates.

Finally, other countries may seek to decrease the influence of the US dollar in international commerce and finance. 

In 2022, the dollar accounted for more than half of all international trade invoicing worldwide, and 64 percent of the global debt was based on dollars, up 15 percentage points since 2010. 

As a result, the dollar enjoys the "exorbitant privilege" of being the world's principal reserve currency, which lowers borrowing costs and gives several additional benefits to the US.

China has already been pressing for the conversion of trade currencies from the dollar to the yuan, agreeing in 2023 with Brazil and Argentina to replace the US dollar as its intermediate currency and denominate commerce with China in renminbi. 

In the same year, China and Saudi Arabia inked a $7 billion currency swap, implying that Saudi Arabia may want to shift more of its commerce away from the dollar.

Orszag notes that although a trade war may have significant consequences on other nations, this is also true for the US, particularly as it is unlikely to be limited to commerce alone.

  • United States
  • tariffs
  • Canada
  • Mexico
  • trade war
  • China
  • Donald Trump

Most Read

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

'Israel’s Digital Iron Dome: Weaponizing the web against Palestine

  • Technology
  • 24 Oct 2025
Arab League chief exposes secret US deal shielding 'Israel’s' nukes

Arab League chief exposes secret US deal shielding 'Israel’s' nukes

  • Politics
  • 27 Oct 2025
Hi-tech holocaust: Microsoft’s role in Gaza genocide

Microsoft's role in world’s first AI-driven genocide, in Gaza, exposed

  • Technology
  • 28 Oct 2025
What Marr evidently didn't seem to understand was that Hedges isn't saying that Western journalists manipulate the truth, but that they systematically amplify Israeli narratives they know are false. (Al Mayadeen English; Illustrated by Batoul Chamas)

Western journalists know they have a case to answer for their betrayal of Gaza, and it frightens them

  • Opinion
  • 24 Oct 2025

Coverage

All
War on Gaza

Read Next

All
An undated photo of US Air Force personnel from the 576th Flight Test Squadron Missile Handling Team installing a cable raceway on an intercontinental ballistic missile at Vandenberg Air Force Base, California (Staff Sgt Jonathan Snyder/US Air Force)
Politics

Trump nuclear test threat risks escalating tensions with China: NYT

Displaced Palestinians walk along the coastal road near Wadi Gaza in the central Gaza Strip, moving toward northern Gaza, Friday, Octtober. 10, 2025. (AP Photo/Abdel Kareem Hana)
Politics

US advances Gaza security force plan amid fragile ceasefire

Sam Altman, co-founder and chief executive officer, OpenAI, listens to testimony during a Senate Committee on Commerce, Science, and Transportation hearing, Thursday, May 8, 2025, in Washington. (AP Photo/Kevin Wolf)
Technology

OpenAI prepares for historic IPO targeting $1 trillion valuation

'Israel' approves illegal settlement expansion in occupied al-Quds
Politics

'Israel' approves illegal settlement expansion in occupied al-Quds

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS