Trump’s tariffs costs worldwide economy USD2 trn
(MENAFN) US President Donald Trump’s tariff policies are expected to reduce the global economy by $2 trillion by 2027, Bloomberg reported Monday, due to disruptions in trade and investment. Since taking office in January, Trump has implemented tariffs aimed at shielding American manufacturers and correcting trade imbalances. In April, he imposed a broad 10% tariff on all imports alongside higher tariffs on countries accused of unfair trade practices. Some tariffs were temporarily paused for negotiations but are scheduled to resume on August 1.
According to Bloomberg, the current US tariff level is the highest since the 1930s—roughly six times greater than when Trump first took office. These measures have led companies to halt investments, redirect supply chains, and reduce profit margins to cover increased costs.
The report states that the global economy will suffer a $2 trillion loss by the end of 2027 compared to projections before the trade war. Foreign direct investment, vital for sustained growth, is set to decline again this year following an 11% drop in 2024, as noted in a recent UN report.
Daniel Harenberg, chief economist at Oxford Economics, called the tariffs a harmful “tax” that disrupts supply chains and global trade. While the US has reached preliminary deals with the EU, Japan, Vietnam, and the UK, and paused hostilities with China, key negotiations with Canada, Mexico, India, and South Korea remain unresolved.
Both the IMF and OECD have lowered their global growth forecasts, attributing the downward revisions to the ongoing tariff-related disruptions.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
