US Trade Policy Sparks Global Economic Turmoil

Published on 4.22.25

  The imposition of tariffs by the United States has led to a surge in gold prices and an increase in US bond yields. The euro has gained ground against the US dollar as investors seek safer havens due to concerns over the impact of President Trump's trade policy. Economist Holger Schmieding at Berenberg Bank warns that Trump's trade policy could cause significant damage to the global economy, undermining confidence in American policy and long-term growth prospects. The US has imposed tariffs on China ranging from 125-145%, while maintaining a baseline 10% tariff on other exporters. China has responded to the US tariffs by matching them on imports, escalating a trade war that threatens global supply chains. This move is part of a broader narrative of a declining global hegemony, where the US employs tariffs as a means to assert dominance. The actions of President Trump suggest a diminishing grip on power, and his use of inclusive language when advancing American interests has been replaced by a more aggressive approach. The head of UNCTAD, Rebeca Grynspan, has expressed concern that global tariffs will disproportionately affect smaller and vulnerable nations, including Least Developed Countries and small island developing States.

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