#TrumpTariffs As of June 12th, 2025, Trump's tariff policies significantly impact the global market. Recent escalations include widespread "Liberation Day" tariffs and higher duties on China, Canada, and Mexico. While a new US-China "framework" aims to reduce some extreme tariffs, overall levels remain elevated, and their legality is still under review in US courts.
This results in a persistent drag on global economic growth, with the World Bank cutting forecasts due to increased trade barriers. Higher tariffs lead to increased costs for businesses and consumers, contributing to inflation. Global supply chains face severe disruption, prompting costly reconfigurations and driving some manufacturing towards onshoring. Market volatility is high, hindering investment.
While aiming to boost domestic industries, these policies often backfire, as retaliatory tariffs from major partners harm export sectors like US agriculture. The overall effect is a more fragmented global economy and strained trade relations, where any localized boost is often offset by broader economic instability.