#PowellRemarks

📉 Impact of Escalating U.S. Tariffs

The United States has recently implemented significant tariffs on imports from China, with rates reaching up to 245%. This aggressive trade policy has led to a decoupling of U.S.-China trade relations, with the World Trade Organization projecting an 80% drop in merchandise trade between the two nations for the year. Such developments have raised concerns about global economic growth, with the WTO lowering its 2025 GDP forecast to 2.2%, down from earlier expectations. If tariffs are fully reinstated, the decline in global trade could deepen to 1.5%.