By Our Reporter
When President Donald Trump announced a tariff rate of 15% and 50% on European goods while the North American country of the US exports to Europe would face 0%, rate, just as his government had had initiated unfriendly migrant policies as well, he may not have known the implications of the action.
The US President may have made move, in what people described as an afterthought to win the heart of the European Union, EU, Leaders, particular, President Emmanuel Macron of France and Friedrich Merz, chancellor of Germany including Giorgia Meloni of Italy when he disclosed that the zero-tariff rate would cover only a number of strategic products including aircraft components and some mineral resources but got it wrong.
President Trump may have shut himself on the leg with his recent policy where he had urged member countries of the North Atlantic Treaty Organization and the EU, to bankroll the shipment of the long-range military and other weapons that would be supplied by the US, to Ukraine to sustain the ongoing war with the Russian Federation.
President Trump’s worry was that the EU, countries, particular, France and Germany, are not doing enough financially to assist the war-torn Ukraine, leaving the financial burden for the US, to shoulder since 2022 that the war broke out.
President Macron, may have sounded it loud and clear to Trump that France was not ready to take on an additional financial burden to support Ukraine for now as the country was not in a position to do so because of its current economic crisis which has grown from bad to worse in the recent years.
The French economy may have degenerated from bad to worse over the last two years because it had put all its egg in one basket, meaning that it has put all its hope for economic survival on the 22 colonized countries in the African Continent mineral resources, which it had seen as its own property and treating the countries as ‘’puppet state’’ though independent but de facto completely dependent upon France and doing its bidding.
Although, France had granted independence to he colonized African countries, described as nominal sovereignty in political circles, ‘’the French country still exercises control over the African countries for reasons such as financial interests, economic and military support’’.
The French Government may have known that it was economically weak when Capt. Ibrahim Traore of Burkina Faso and arrow head of the formation of the Alliance of Sahel States, AES, together with Generals Abdulrahmane Tchiani of Niger Republic and Assimi Goita of Mali, denounced the termination of the colonial military deals and closed all the French military bases protecting the country mining companies in the region.
The situation was so bad for France as other French -speaking West and Central African countries like Tchad, and Senegal, were said to followed suit by taking over the control of its economy, and kicked -out the French mining companies from their countries.
Given that France had lost out in the Sahel States to maintain its domination in the mining of the States’ gold, uranium, manganese, Lithium, phosphate and diamond may have informed while President Macron and other EU, Leaders had resorted to plan B, to pilot ditching of the US dollars used in concluding international transactions to strengthen the euro which value is gradually dropping against the dollar and other foreign currencies in the international market.
Many believes that ever since, President Macron and the other EU, member -countries Leaders made the bold initiative to strengthen the euro against the chaotic rollout of President’s tariffs for European goods, it was said to risen more than 11% against the US dollar and even gaining against other foreign currencies including the Japanese Yen, British Pound Sterling, Canadian dollar, and South Korean won.
Christine Largarde, President of EU, Central Bank, had stated that President Trump, had provided the ample opportunity for the euro ‘’to gain a global clout’’, insisting that open markets and bilateral rules are gradually fracturing US domination of the world economy. He was said to have informed those that cares to listen, particular, the international traders, that the use of ‘’the US, dollars, in concluding international transactions in the EU, member countries, is no longer certain’’.
The argument among the EU, member countries Central Bank governors was that the dominant role of the US dollars as the world’s reserve currency became more pronounced because ‘’investors, governments and Central Banks around the world seek the safe, predictable returns of world -dominated assets like treasury bonds’, and which was said to have had created room for ‘’ a robust, built -in demand for dollars’’ thus giving the North American country an edge over other world major world currencies.
It was not surprising why the US, government could easily borrow from the World Bank and other multi-lateral financial institutions to boost the spending power of the country and support the African Development Band, AfDB, which currently has Akinwumi Adesina, a former minister of Agriculture and Rural Development during former President Goodluck Jonathan as the President, compared to the support of the other G7 members to the Development Bank. The US government recent withholding of $500 billion support for the AfDB, over undisclosed reasons speak volume.
.If the 20-member countries Central Bank of the EU, threat to drop the use of the US dollars in international transactions, then the 21 BRICs -member countries which controls about 50% of the world markets’ rollout of the ‘’UNi, currency to reduce the heavy reliance on the US dollar to conclude international transactions is anything to go by, President Trump has to watch it.
At the recent BRICs -member countries summit in the South American country of Brazil, the country’s Central Bank governors in their meeting were said to have focused on payment connectivity and local currency-trade rather than single currency, particular, in trade among member countries.
Financial analysts fears that the BRICs 21 member -countries strategy to promote the use of local currencies in trade and settlements, rather exclusively relying on the dollar, would go a long way to affect the US and its ally’s economy which only controls about 30% of the world economy and trade.
The US President may have known that many African countries including Nigeria will eventually the BRICs countries in future I its trade transactions that he had recently hosted Presidents of the African countries of Gabon, Guinea-Bissau, Liberia, Mauritania, and Senegal , where the parties were said to have discussed business opportunities , as the US, President was said to have assured the countries that they were unlikely to face the US new tarrifs.
President Trump may have hosted the Five African Leaders in the White House, because he knew that US, had lost out in Ukraine, where the Russian Federation were said to have taken over all the rich mineral resources including Lithium in the Donne Sekt region in Ukraine, and these African other African Leaders are from countries with very valuable land, great mineral resources, and great crude oi deposits including gold and lithium.
Brice Olgui Nguema, the Gabonese President may have shocked President Trump, when he declared that what his country is open to investment and wants to see its raw mineral resources processed locally ‘’. He was emphatic: Gabon needs large investments in the country’s energy sector. The message was clear to the US Government: Gabon is not ready to open up its economy for US Companies to freely mine its mineral resources with little or no benefit to the people but are free to invest in any sector of the country’s country that would benefit the people.
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