Trump’s Sweeping Tariffs Spark Global Economic Alarm

The Trump administration’s abrupt imposition of sweeping tariffs on foreign imports has ignited fears of a global economic slowdown, with analysts warning of heightened inflation, strained consumer budgets, and long-term damage to international trade systems.

The policy, announced during a Rose Garden event, introduces a 10% universal levy on all imports alongside targeted tariffs of 34% on Chinese goods, 20% on European products, 24% on Japanese items, and 10% on British imports. President Trump framed the move as an economic “Liberation Day” for the U.S., declaring it would “make America wealthy again.”

Nigel Green, CEO of financial advisory firm deVere Group, condemned the decision as a “reckless” disruption of the post-war global trade framework. “This is how you sabotage the world’s economic engine while claiming to supercharge it,” he said. Economists echoed concerns that the tariffs would function as indirect taxes on American households, raising prices for everyday goods ranging from electronics to groceries.

The Organization for Economic Cooperation and Development (OECD) recently projected that a 10-percentage-point increase in U.S. and partner tariffs could reduce global GDP by 0.3% within three years, while annual inflation might rise by 0.4 percentage points. Green emphasized the direct impact on U.S. living costs, stating, “Wages won’t keep up with price hikes, and the squeeze on households will likely be intense.”

Market reactions underscored growing unease. Bond yields climbed as investors weighed the risks of trade-driven inflation and fiscal instability, particularly for nations grappling with pandemic-era debt. Green warned of a “chilling effect” on business confidence, noting that uncertainty could freeze hiring and investment, potentially seeding a recession.

The tariffs also reignited debates over the U.S. dollar’s role as the global reserve currency. Green cautioned that “any whiff of unpredictability” in U.S. policy might erode international trust, further complicating economic recovery efforts. While the administration defends the measures as corrective action against trade imbalances, critics argue they risk undermining America’s economic leadership.

Green predicted a likely reversal within 12 months as financial and political costs mount. “Economic gravity will kick in,” he said, suggesting markets and policymakers would reject “self-inflicted wounds.” For now, the world braces for fallout from what analysts describe as a pivotal—and perilous—shift in trade policy.

“The global economy runs on reality,” Green concluded. “The reality is that this will likely cause harm on a scale that can’t be spun away.”