According to a report published on the 22nd by the International Monetary Fund, the Trump administration's practice of imposing tariffs on nearly all its trading partners could have a significant impact on the global macroeconomic economy. The report highlights that U.S. tariff increases will reduce global demand in the short term, leading to higher import prices and further exacerbating inflationary pressures. Additionally, uncertainty surrounding tariffs could also weaken consumer and business confidence, thus worsening fluctuations in financial markets. The report indicates that U.S. tariff imposition could prompt countries to respond by further increasing trade barriers to address a growing trade imbalance, thus leading to increased geo-economic division, the damages of which to the global economy will be lasting.
