[coldtea]

>But I (an American) pay for some European services in Euros, meaning those got 10% more expensive.

European services would be the least of issues. The main issue would be the tons of foreign imported food, cars, products, clothes, gadgets, and so on - including tons of component parts for "american" products (not to mention materials and tooling to make even the increasingly rarer "100% made in US" products).

[neilwilson]

Wouldn't that be their problem?

Where else are they going to sell all that stuff given there isn't an untapped source of demand to absorb it (or that demand would already be serviced).

So what you have is a production glut, and nowhere to shift it to. Which usually causes a price collapse and production collapse.

Which then causes unemployment in the source nation and interest rate cuts...

[coldtea]

>Wouldn't that be their problem?

Not as much, as they can route around the issue, selling elsewhere. The import (or things "made in USA" but depending on imports) represents like X% of US good consumption, but each players' US exports represents a much smaller (and falling) share of their total exports.

The world is much wider in 2025 than it was in the 1980s or even in 2000 or 2010. 2025 United States's Share of Global GDP: 12.7% (project to fall to 11.x in the next 5 years). It was around 40% in 1960s, and 25-30% in 1990. US represents in average 20% of China's exports across various categories. The max % seen is about 25% for consumer electronics segment.

The rest is cope.