Trump tariffs pile stress on ailing world economy

#Trump #tariffs #pile #stress #ailing #world #economy

LONDON/TOKYO: The latest period of US trade prices on Wednesday, which has been unveiled, has barely recovered from the post -inflation of the worldly economy than a global economy, which is weighing on a record debt and is unrelated to the geographical political struggle.

Depending on how President Donald Trump and other countries are moving forward, it could be less as a turning point for the globalization system, which so far its biggest component understood the power and reliability of America.

“Trump’s prices are in danger of destroying the global free trade order, which the United States has led it only after World War II,” said Takahayad Kuchi, chief economist at the Namura Research Institute.

But in the coming months, it will be simple and easy to encourage-and for this reason, rotate in demand-purchased by consumers and businesses across the road and the effects of the new levies that will prevail on thousands of goods sold.

“I am moving it towards a worse performance, more uncertainty and potentially something that we can demand for global recession, as the United States and the global economy grow,” said Antonio Fatas, France’s Incede Business School’s macroeconomic, said Antonio Fatas.

“We are going to a world that is worse for everyone because it is more defective,” said Fataas, who worked as an International Monetary Fund and World Bank adviser. Addressing the White House Rose Garden, Trump said he would impose 10 % baseline tariffs on all imports and will hold a high duties chart on the country’s largest trading partners, including 34 % on China and 20 % in the European Union.

Earlier, 25 % auto and auto parts tariffs were confirmed. Trump said the United States would return the prices to strategic manufacturing capabilities.

Olo Sonola, head of US economic research in Fitch ratings, said that the new global imports imposed by Trump, the US tariff rate on all imports increased by 22 % – the rate last visible around 1910 – which was only 2.5 percent in 2024.

“This is a game changer, not only for the US economy but also for the global economy,” said Sonola. “Many countries will potentially suffer from recession.”

IMF Managing Director Kristina Georgia told a Reuters event this week that she had not yet seen a global recession. He soon added the fund to “reform” a small downward side in the prediction of its 3.3 percent global growth in 2025.

But the effects on national economies are ready to be widely removed, which has been seen for the UK’s spectrum from 10 % to Cambodia, from 10 % to 49 %. If the result is a wider trade war, it will reduce even a widespread reduction for producers like China, who will leave new markets despite eliminating consumer demands all over the world.

And if the prices pushed itself to the recession, it will weigh in the developing countries whose lucky is closely tied to the world’s largest economy. “What happens in the United States does not live in the United States,” said Barry Ashinger, a professor of economics and political science at the University of California, Berkeley.

“The economy is huge and is also affected by the rest of the world through the flow of the rest of the world through the rest of the world.”

A ‘Ultimate World’

The effects of knocking for policy makers in central banks and governments are also likely. Eliminating supply chains that has been a lid for consumers for years can lead to the world in which inflation is a “hot” trend than 2.0 %, whose central banker is currently agreed.

This will make the Bank of Japan’s decisions complicated, which can lead to pressure to counter inflation with high interest rates, as it decreases the eyes of its key counterparts, and as its export -dependent economy is affected by the US duties.

Auto exporters Japan, affected at 24 % mutual rate, and South Korea, which was imposed 25 %, indicated plans to take emergency measures to help high -US revenue -affected businesses.

The economies that increase the weak production will need to make even more struggle to pay for the world’s record $ 318 trillion loans, and will provide money for budget priorities, ranging from defense spending to climate action and welfare.

And what would happen if Trump did not bring in a domestic American manufacturing to invest in business to encourage Trump’s highly stated purpose, looking at the shortage of domestic laborers that already faced a country with full job?

Some people look at other ways to overcome the American global trade deficit, which prevents it too much.

“We are watching it offering more dangerous ways to deal with the dollar’s permanent power,” said Freya Beamish, chief economist at the investment firm, TS Lombard.

Such measures can endanger the dollar’s privileged position because the global reserve currency of selection – a result predicts something, if the dollar is not a real alternative.

However, European Central Bank President Christine Legarde told a program in Ireland on Wednesday that Europe now needs to work and accelerate economic reforms, which he called the “Ultimate World”.

He said of the war period after the low inflation and the rising trade in the open global economy, “Everyone benefited from a hedimon, the United States, who was committed to a multi -faceted, rules -based order.” “Today we must counter closures, pieces and uncertainty.”