Trump's global tariff initiative sends shockwaves through global economic system

(MENAFN) President Donald Trump's global tariff initiative, aimed at revitalizing the U.S. economy by cutting trade deficits and re-industrializing the country, has sent shockwaves through the global economic system. The tariffs, which target nearly every nation with increases as high as 34% on imports from China, 27% from India, and 20% from the European Union, represent the highest levels seen since World War I, far surpassing even the tariffs of the 1930s during the Great Depression.

This aggressive tariff policy is reshaping international trade, pushing the global economy away from globalization towards protectionism and realigning trade flows with geopolitical motives. The immediate impact has been dramatic: U.S. stock markets plunged, and the dollar weakened. Major companies like Apple, Amazon, and Nike saw significant losses, while global stock markets also suffered, particularly in Canada, Germany, Japan, and the UK.

Despite the turbulence, the tariffs reflect a broader shift, described by some experts as the beginning of a new economic era. The disruption has left both supporters and critics alike stunned, with a consensus forming that the U.S. is entering a volatile and uncertain future. While some, like Russian philosopher Aleksandr Dugin, view the tariffs as morally exceptional, many others see them as a step toward an economic crisis that echoes the turmoil of the past.

MENAFN08042025000045015687ID1109403202