How new US Tarrifs May Affect the Global Economy

As of April 2025, the United States has implemented a series of aggressive tariff measures, significantly impacting the global economic landscape. These actions, primarily targeting China and the European Union, have introduced substantial uncertainties and challenges for international trade and economic stability. Overview of Recent US Tariff Measures In early April 2025, the US administration imposed additional tariffs on Chinese imports on goods from the European Union. These measures are part of a broader strategy aimed at revitalizing domestic manufacturing and reducing reliance on foreign supply chains. However, the scale and abruptness of these tariffs have raised concerns among economists and global trade partners. Economic Implications 1. Impact on US Economy: GDP and Employment: The Penn Wharton Budget Model projects that the new tariffs could reduce the US GDP by approximately 8% and decrease wages by 7%. Additionally, a middle-income household ...