In a candid chat on local N1 Television, Croatian economic analyst Petar Vuskovic warned that the U.S. President Donald Trump's tariffs could be the match that lights the fire for a recession fueled by rising inflation. Think of it as a domino effect—one spark ignites market chaos! ⚠️
Vuskovic noted that the economic storm is already brewing: stock markets are tumbling, investors are jittery, and the signs of a deep recession are everywhere. With companies laying off workers and production costs climbing due to pricier imports, the pressure is on for everyone, from state budgets to everyday consumers.
European stocks have been on a four-session slide while the S&P 500 suffered losses for a third consecutive day. This unfolding scenario suggests that we might have already stepped into a new era marked by serious economic challenges. 🏦
In Croatia, while exports to the United States make up less than 10% of Europe's total (about 587 million euros a year), tariffs are expected to hike prices on essentials like computer components. The ripple effects could reduce budget revenues significantly if export-dependent sectors feel the heat. 📈
Concluding his insights, Vuskovic criticized the protectionist policy, arguing that while tariffs might shield the richest, the real cost is borne by everyday citizens. As the global economy navigates these troubled waters, all eyes remain on how these measures will shape our financial future.
Reference(s):
cgtn.com
