Hey folks! Recent economic modeling suggests that new tariffs signed by U.S. President Donald Trump could dent the U.S. economy by a whopping $108.2 billion a year – that's a 0.36% GDP drop 😲. And guess what? Other regions aren’t left untouched.
According to the study, while the U.S. takes the biggest hit, the Chinese mainland may see a reduction of around $66.9 billion, the EU about $26.6 billion, and Japan a much smaller $3.9 billion dip. Professor Niven Winchester from Auckland University of Technology used a global model covering production, trade, and consumption to come up with these figures.
Looking ahead, the UK's National Institute of Economic and Social Research warns that if the current U.S. import tariffs persist, global GDP could shrink by 1.1% by 2030 compared to a no-tariff scenario. Countries like Mexico (-3.5%), Canada (-2.7%), and the U.S. (-2.5%) are expected to face notable impacts.
But tariffs aren't acting alone. Other factors such as stricter domestic immigration policies and rising government debt continue to stir uncertainties in the U.S. labor and financial markets. While this news might feel distant, it’s a sharp reminder of how interconnected global economies are – policy shifts in one nation can ripple across the world, affecting markets and our everyday lives 🌍.
Stay informed and keep an eye on these global trends as they might influence everything from tech innovations to your favorite local brands. Knowledge is power in our fast-paced, interconnected world 💡.
Reference(s):
Tariffs will hurt U.S. more than many other economies, report suggests
cgtn.com
