Trump Tariff War: Inflation Rising, Growth Slowing?

Bittime - The import tariff policy or Trump Tariff implemented by President Donald Trump against Mexico, Canada and China has triggered global economic turmoil. Read the full review!

Not only does this policy affect the prices of goods and services, it also raises concerns about slowing economic growth and surging inflation. Financial markets reacted with instability, while affected countries began to devise countermeasures.

The imposition of tariffs is not just a political step, but is also a test of world economic resilience. Keep following the review.

The Impact of Trump Tariffs on the United States Economy

Tariff policies imposed on imports from Mexico, Canada and China have a direct impact on the United States economy. 

Consumers and business people are starting to feel the increase in prices of imported goods, which in turn contributes to increasing inflation.

The US stock market reacted negatively with stock values ​​falling, while currency movements also experienced high volatility. 

Economists warn that in the long term, this policy could slow US economic growth due to increased production costs and reduced people's purchasing power. 

Despite claims that this policy aims to protect domestic industry, many analysts see potential side effects that do more harm than good.

Read also: Trump Tariffs and Their Impact on the Crypto Market

Global Reaction To Trump Tariffs

The impact of Trump's tariffs is not only felt by the United States, but also by its trading partner countries. Canada and Mexico, which have been key US trade allies, have announced countermeasures to reduce the negative impact on their domestic industries. 

Meanwhile, China plans to take US tariff policies to the World Trade Organization (WTO) and consider broader countermeasures.

This situation raises fears of a prolonged trade war that has the potential to disrupt global supply chains. Market players are starting to worry that this uncertainty could lead the world economy into a recession if it is not immediately reduced.

Threat of Global Recession and Market Instability

Analysts warn that the long-term impact of these tariff policies could be broader than expected. 

Trade uncertainty can cause companies to delay investment and business expansion, which will ultimately slow overall economic growth.

If the trade war continues, raw material prices will soar, causing production costs to increase, which will ultimately be passed on to consumers in the form of higher prices for goods. 

The combination of rising inflation and slowing economic growth could be a dangerous combination that triggers a global recession.

Read also: How Will Donald Trump's Tariff Policy Direct the Crypto Market?

FAQ

1. What are the Trump Tariffs? 

The Trump Tariff is an import tariff policy implemented by President Donald Trump against several countries, including China, Mexico and Canada, with the aim of protecting US domestic industry.

2. How will this tariff policy impact the US economy? 

This policy causes an increase in the price of imported goods, inflation, and stock and currency market instability, which has the potential to slow down economic growth.

3. Could this policy cause a global recession? 

If the trade war continues, there is the potential for a global recession due to supply chain disruptions, rising prices of goods, and investment uncertainty in various economic sectors.

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Reference 

Coincident, Trump Warns Of Tariffs Impact On Global Growth And Inflation, accessed February 4, 2025.

Financial Times, Trump tariffs reaction as it happened: US delays 25% tariffs on Canada and Mexico but keeps 10% levy on China, accessed February 4, 2025.

Author: Y