Global economy hit hard due to Trump tariffs

President Donald Trump's prices would have “obstructed the wheels of a global economy”, which for decades have been greased by “predictable and relatively free-free-exchange”. However, pure uncertainty has become a major trail factor in itself.
The prices of American president Donald Trump are would have Clear the global economy as large multinationals, to the niche electronic commerce players, reduced the sales objectives last week, warned of job cuts and examined their business plans, while major economies have revised the prospects for growth in the readings of negative data.
Cyrus de la Rubia, chief economist of Hamburg Commercial Bank AG, warned that Trump prices could cause a reaction in the coming months, while the economist of emerging markets in the capital of capital Shilan Shah predicted that punitive rates, especially on China – are “here to stay”.
The analyst says that Trump's prices cause investors' uncertainty
In this excellent play, Turalay Kenc explores Trump's pricing policies through Triffin's dilemma – the inherent conflict that a currency is faced when it is also the global reserve.
We make it publicly accessible before our next global economic prospects.
– Ahmet Kaya (@kayaahmetihsan) May 2, 2025
A study published in the National Institute Global Economic Perspectives Professor Turalay Kenc, on May 1, revealed that President Trump's prices sent “shock waves via global markets”, triggering strong sales, increasing the uncertainty of investors and disturbing the flows of international trade.
Kenc noted that these prices, introduced under the cover of economic nationalism and would aim to reduce trade deficits while protecting national industries, targeting a wide range of imports – industrial metals such as steel and aluminum to cars and consumer goods.
According to Kenc, although the prices have been formulated as corrective measures to combat the perceived commercial imbalances, they actually acted as a “beggar policy”, trying to improve the American commercial terms at the expense of the business partners.
He added that this approach provoked reprisals from major economies such as China, the European Union and Canada, destabilizing established global value chains, causing a significant fragmentation of the supply chain and amplifying the costs of inputs for national producers and international companies depending on cross -border production networks.
“The economic repercussions of these trade tensions quickly reflected in the financial markets. In a marked escalation, the monthly index of the uncertainty of economic policy (EPU) increased sharply from 183 in March 2024 to an unprecedented summit of 460 in January 2025. ”.
–Professor Turalay KencFormer deputy for the Central Bank of Türkiye
The EPU index, which quantifies uncertainty according to the frequency of economic uncertainty linked to policies in the main media, has increased in an increase in anxieties about the macroeconomic consequences of Trump's tariff wars, the potential erosion of multilateral global growth, and the risk of disturbances in the upper supply chain, declared Kenc.
China re -evaluates Washington calls for interviews on prices
The Chinese trade ministry said on Friday that it was assessed a Washington offer to organize talks of more than 145% of American prices, to which it had responded with 125% samples. Washington and Beijing were locked up in a cat and mouse game on prices, the two parties that are unlikely to be perceived as a break in a trade war that “rocked” the global markets and disturbed the supply chains.
However, the Ministry of Commerce warned the United States not to engage in “extortion and coercion”, adding that all attempts “would simply not work”.
The ministry also stressed that the United States should be ready to take measures to correct some of its “erroneous practices” and cancel unilateral prices – and that Washington was to show “sincerity” in negotiations.
The Chinese Minister of Foreign Affairs, Wang Yi, argued these feelings stressing that the choice to remain silent, compromise and curl up “only intimidated it to wear more luck.”
Trump's administration suggested that it was close to an agreement with India, South Korea and Japan to avoid more prices in the coming weeks.
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