Good, Bad, Worst: Three Ways Donald Trump's Tariffs May Go

The United States President Donald Trump has been imposing a slew of trade tariffs, triggering trade tensions with countries across the world.

Amidst talks of a potential trade war breaking out between major trade partners in the world, global markets have hit new lows and safe-haven assets are behaving unpredictably.

Here are a few possible scenarios that can play out in case a trade war actually takes place:

Best Case 

In the best case scenario, Donald Trump could possibly reverse tariffs to pre-April 2 levels or announce a temporary moratorium. This would be the best way to reverse the damage that has been caused and in all likelihood, it could potentially trigger a short-term gain for global markets, attracting investments back into riskier assets.

Most Likely Case

Of all the scenarios, this one is the most likely to play, wherein Trump could possibly agree to several bilateral trade agreements. It would keep the doors open to negotiations, inviting winners and losers alike and keep market sentiments unpredictable and volatile.

Worst Case 

In the worst possible case, other nations may end up retaliating, not just against the US but also against each other, which could then go on to have serious implications on domestic as well as global growth.

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