Analysis: Why Trump 2.0 would make the world poorer

## Potential Economic Impact of New US Tariff Plans

The United States historically faced severe consequences when tariffs were significantly increased nearly a century ago, leading to a collapse in global trade and exports during the Great Depression. Now, similar concerns arise with plans to implement higher tariffs on imports. Proposed tariffs could reach 10-20% on all goods entering the United States, significantly higher than the current average of 2% for industrial goods. Chinese imports might face even harsher tariffs of up to 60%.

Most economists argue that such tariffs function as import taxes, potentially raising costs for consumers and hurting businesses dependent on imported materials. Tariffs are anticipated to negatively affect global growth, causing inflation in the US and triggering retaliatory measures from other countries. Such moves could lead to worldwide trade conflicts and damage international economic relationships.

Economic forecasts warn that these tariffs could reduce global economic growth, significantly affecting company profits and stock indexes, particularly in Europe and China. Potential adverse effects include a stagnating eurozone economy, comparable to the energy crisis impact following geopolitical tensions in 2022.

The possibility of increased economic protectionism threatens the principles of global trade, which have historically driven growth. As global trade faces challenges, concerns about the impact of trade policy shifts on global economic stability persist. Additionally, comments about exerting influence over the Federal Reserve raise fears over possible impacts on financial markets and the stability of the US dollar.

The potential for these economic policies suggests a shift towards more radical approaches to international trade and domestic economic governance, possibly leading to significant global economic disruptions if realized.