Tue, 01 Apr 2025

Tue, 01 Apr 2025 Trump poised to reshape global economy and how world does business

The BBC’s economics editor Faisal Islam explains why a US tariff on goods imported into America is such a big deal for both consumers and countries.
Donald Trump is expected to reveal his plan to impose massive tariffs on US imports today, effectively ending decades of economic globalization. The move could lead to a universal tariff on all imports into the US, potentially worth trillions of dollars in revenue. The tariff options being considered include 10% or 20%, which would be "reciprocal" and aimed at countries deemed to have unfair trade practices. This could result in widespread imposition of tariffs, with some countries possibly facing different levels of a universal tariff. Experts warn that the move could lead to significant economic consequences, including a 1% contraction in the UK economy, equivalent to $1.4 trillion globally due to diverted trade and rising prices.
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