The Impact of New US Tariffs in 2025: Towards a Global Economic Collapse?

Abstract

The year 2025 signifies a pivotal juncture in the evolution of US trade policy, marked by the implementation of substantial tariffs not only on China, but also on established trading partners such as Canada, Mexico and the European Union. This opinion piece undertakes an assessment of the prospective economic and geopolitical ramifications of the introduction of these protectionist measures. The analysis posits that the implementation of these tariffs could lead to an escalation in the fragmentation of global trade, resulting in the intensification of inflationary pressures and the potential triggering of a global recession. The article explores the implications for US economic stability, potential retaliatory actions by affected countries and the reconfiguration of global trade alliances. In addition, it discusses alternative strategies that could mitigate the negative results, including promoting multilateral trade agreements, investing in technological advances and diversifying export markets. In conclusion, it highlights the risks of escalating trade wars and emphasises the need for international cooperation to avoid long-term economic instability.

Keywords: Trade tariffs; Economic protectionism; Trade war; Impacts of trade policy; Fragmentation of international trade; Slowdown in economic growth