🌐 What’s going on — the tariff regime

The Trump administration implemented a sweeping import-tariff policy in 2025: a 10% baseline on all imports, plus higher “reciprocal tariffs” for certain countries.

Key sectors targeted include steel, aluminium, copper, automobiles (and parts), and other manufactured goods.

For many trading partners, tariff rates are substantially higher — in some cases bringing total duties to over 30–50%, depending on the origin country and product type.

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🔎 Global economic effect — mixed but risky

Global trade flows have already started to shrink: U.S. import volumes have dropped by significant margins after tariffs took full effect, and many analysts warn this could depress global growth and increase risk of recession.

Inflation is rising: increased import costs feed into higher consumer prices. This erodes purchasing power and can dampen demand in tariff-affected economies.

Some international institutions still expect moderate economic growth (global growth in 2025 around 3.2 %), partly because companies rushed to import goods ahead of tariffs or shifted supply chains — but they caution this may only be temporary relief.

Overall, the “protectionist shock” is causing uncertainty — which by itself can slow investment, reduce trade volumes, and create volatility in markets worldwide.

#TrumpTariffs