In the ever-shifting landscape of the global economy, U.S. President Donald Trump’s tariff policies have sown turmoil rather than jubilation, casting shadows over markets, businesses, and consumers alike. Since Trump’s presidency began, these policies have primarily targeted neighbouring nations like Canada and Mexico, as well as Europe and China, notably imposing a hefty 25 percent tariff on steel and aluminium imports.
In response to these aggressive measures, retaliatory tariffs have emerged, plunging the global economic sphere into chaos—a phenomenon dubbed “Trumpcession” warns of potential economic downturns as a response to these changes. U.S. Treasury Secretary Scott Bessent labelled this period a “detox” phase, suggesting temporary economic slowdowns may precede longer-term benefits, yet admitted there are “no guarantees” that the U.S. won’t face a recession within Trump’s term.
Recent data unveils a stark reality as consumer sentiment plummeted to its lowest point since late 2022, exacerbated by soaring prices, especially noticeable in egg costs. Martin Wolf, chief economics commentator for the Financial Times, anticipates that escalating tariffs will elevate prices, obstructing Trump’s ambition for a swift shift towards domestic production. Furthermore, U.S. firms are witnessing diminishing returns in foreign markets, with American farmers significantly impacted.
Forecasts from a Financial Times survey reveal a drop in U.S. growth projections from 2.3 percent to 1.6 percent for 2025, attributing stagnation to uncertainty stemming from unpredictable economic policies. Experts assert that Trump’s tariffs are erecting insurmountable trade barriers that disrupt not only the U.S. economy but the entire multilateral trading system.
The Organisation for Economic Co-operation and Development has revised global growth estimates down to 3.1 percent for 2025, highlighting increased trade barriers as a leading cause. Nobel economist Joseph Stiglitz cautions that Trump’s policies may steer the U.S. toward perilous stagflation, while media comparisons to the Great Depression illustrate the depth of concern surrounding potential economic repercussions, echoing memories of the Smoot-Hawley Tariff Act of 1930—a pivotal event regarded as a catalyst for the economic turmoil of the era.
U.S. President Trump’s aggressive tariff policies have destabilised global markets, drawing retaliatory responses and sparking fears of recession. With predictions of slow economic growth and heightened consumer prices, uncertainty looms over both U.S. and global economies. Experts warn that these tariffs could lead to significant economic deterioration akin to the Great Depression.
In summary, Trump’s tariffs have not only disrupted the U.S. economy but have cast a shadow over the global economic landscape, raising concerns about future growth, consumer sentiment, and trade relationships. With experts warning of potential stagflation and comparisons drawn to historical economic downturns, the ramifications of these policies prompt critical reflection on their long-term viability and consequences.
Original Source: english.news.cn
