Trump tariffs: The global impact of new tariffs and rising recession risks for Donald Trump

Traditional wisdom points out that our sneezes have caused cold-like symptoms in all international economies. U.S. President Donald Trump announced economic policies through new comprehensive tariffs similar to earthquakes, causing global market disruptions. The impact of the world on the U.S. trading partners will be serious, as well as the trading partners facing the U.S.

The U.S. economy is at risk of recession

At the beginning of the year, the U.S. economy was in a strong state, but this stability is now at risk. Trump’s latest trade policy imposes a 10% basic import tax, while tariff rates for goods from 60 independent countries, including China and Europe, raise tariffs in 20% to 34%. Several economic experts believe that these trade regulations may turn the U.S. economy into a recession.
According to a 2025 JPMorgan analysis, the consumer price index will increase inflation by 2% due to the imposed tariffs. Due to this additional financial weight, current stubborn inflation may worsen, which will slow down consumer purchasing power and create operational problems for businesses. Deutsche Bank has identified a “meaningful increase in recession risk” as rising costs and retaliatory trade barriers present challenges for the company.

Global trade disruption and economic slowdown

The U.S. tariff policy will have economic results that affect countries around the world. As U.S. consumers reduce their purchases of foreign products, their exporters lose money. The U.S.’s major trading partners, namely Europe and China, suggest that they may take retaliation measures, which in general could lead to a full-scale trade war.

European companies face two major problems amid supply chain disruptions, coupled with the intensification of bureaucratic challenges. According to EU official Ursula von der Leyen, all businesses, regardless of their size, must expect costs to rise when trading within the U.S. market. China expressed strong condemnation through retaliation, which could lead to increased trade tensions.

Consumers and businesses support higher costs

Fluctuations in import spending will work with other international buyers to raise prices for ordinary consumer goods for American shoppers due to new trade restrictions. The proposed U.S. tariffs Trump sought to stimulate domestic manufacturing have been strongly pushed by economists who predict that such measures will increase the level of business and the cost of consumer buying points. European customers may experience the expected price increase when international trading countries decide to retaliate. Global markets remain uncertain as governments may choose to take strategic measures against U.S. companies rather than introduce broad tariffs. Oxford economists predict that the global economy will escape a full-scale economic downturn. Apart from the pandemic era, the upcoming period is expected to show the lowest growth rate since the 2008 financial crisis. Businesses and consumers are prepared to face economic disruption as tensions between trading countries are becoming increasingly uncertain.

FAQ:

1. How will President Donald Trump’s new tariffs affect the U.S. economy?
   Tariffs could lead to higher inflation, higher corporate costs and potential recession due to lower trade and rising consumer prices.
2. What are the global consequences of new US tariffs?
   Tariffs could damage supply chains, trigger retaliatory trade barriers, and slow economic growth in countries that rely heavily on exports to the United States.