As U.S. President Donald Trump continues to push his aggressive tariff strategy, the impact on the global economy is becoming increasingly severe. Instead of stable, predictable trade, the world is now grappling with tension, uncertainty, and economic slowdown—and recent reports show things may be getting worse.

⚙️ Global Trade Stalls as Uncertainty Spikes

International economists are sounding the alarm. BNP Paribas’ Isabelle Mateos y Lago called Trump’s trade actions a “global economic shock” with the potential to derail long-term growth.

But it’s not just about tariffs—uncertainty itself has become a key factor choking investments, delaying expansion, and pushing companies to lay off staff.

📉 Companies Cut Targets, Lay Off Workers, and Revise Strategies

Major multinational corporations are lowering sales forecasts, reviewing business plans, and warning of job cuts. The ripple effect is already visible on global financial markets.

Hamburg Commercial Bank’s Cyrus de la Rubia warned that Trump’s tariffs could trigger broader damage in the months ahead, while Capital Economics’ Shilan Shah stressed that the clampdown on China isn’t going anywhere—it’s likely to intensify.

📊 Global Uncertainty Index Surges to Record High

According to economist Turalay Kenc, Trump’s tariffs have triggered massive sell-offs, disrupted trade flows, and heightened global market anxiety.

While Trump framed his policy as protecting American industries and reducing trade deficits, Kenc argues it’s more like a “beggar-thy-neighbor” approach—attempting to fix U.S. trade balances at the expense of global partners.

Unsurprisingly, retaliatory tariffs followed from China, the EU, and Canada, damaging global supply chains and driving up production costs for businesses worldwide.

📈 The Economic Policy Uncertainty (EPU) Index soared from 183 in March 2024 to a record-breaking 460 in January 2025.

China: Open to Talks, but Won’t Be Bullied

On Friday, China’s Ministry of Commerce said it was reviewing Washington’s invitation to negotiate over 145% U.S. tariffs, which Beijing countered with its own 125% import duties.

The two powers are locked in a game of brinkmanship, with neither side willing to appear weak. But China issued a clear warning: coercion won’t work and real compromise must come from sincerity.

“Backing down to a bully only encourages them to push harder,” warned Foreign Minister Wang Yi.

🤝 Talks with India, South Korea, and Japan Offer Hope

Despite the tough China stance, the Trump administration signaled progress in negotiations with India, South Korea, and Japan.

White House officials said agreements with these key partners may be finalized soon, possibly preventing a further escalation in the coming weeks.

#TRUMP , #globaleconomy , #TradeWars , #TradingCommunity , #worldnews

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