In a fresh look at global trade, a new economic analysis reveals that the revised tariffs signed by the Trump administration are dealing a heavier blow to the U.S. economy than many other regions. According to modeling by Professor Niven Winchester of Auckland University of Technology, the new tariffs could cut the U.S. annual GDP by 0.36%, which amounts to about $108.2 billion. 😮
The ripple effects are felt across borders too. For instance, the Chinese mainland may see a GDP reduction of $66.9 billion, the EU’s by $26.6 billion, and Japan’s by $3.9 billion. While several economies are affected, the data shows that the U.S. is taking the biggest hit.
Looking to the future, research from the UK's National Institute of Economic and Social Research suggests that by 2030, ongoing U.S. import tariffs could reduce global GDP by 1.1% compared to a tariff-free scenario. Among the hardest hit could be Mexico (-3.5%), Canada (-2.7%), and the U.S. (-2.5%).
Beyond the tariffs alone, other domestic factors—like policies on immigration and rising government debt—are adding to the uncertainty facing the U.S. economy. It’s a classic case of balancing protectionism with the risks of stifling broader economic growth.
This unfolding economic drama is a reminder of the delicate dance between safeguarding domestic interests and maintaining global market stability. Stay tuned for more updates as this story develops! 📉💼
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Tariffs will hurt U.S. more than many other economies, report suggests
cgtn.com
