Shifts in Supply Chains

Companies may relocate production to avoid tariffs. For example, instead of manufacturing in China and exporting to the U.S., a company might open a factory in Mexico or Vietnam.

---Long-Term Global Effects

Inflation: Higher import costs can cause price rises across the economy.

Slower Growth: As trade slows and businesses face higher costs, economies may grow more slowly or even slide into recession.

Reduced Investment: Businesses delay or cancel expansion due to uncertainty.