Thu, 03 Apr 2025

Thu, 03 Apr 2025 Faisal Islam: This is the biggest change to global trade in 100 years

The impact of the tariffs will be huge, with significant changes to long-standing global avenues of trade.

* The US has imposed a 10% universal tariff on all imports, effective immediately, with some countries facing even higher rates.
* This move is expected to have a huge impact on the global economy, with stock market falls and significant changes to long-standing trade routes.
* Dozens of countries will be charged "reciprocal tariffs" for having trade surpluses with the US, essentially penalizing them for exporting more goods than they import.
* The US administration claims the tariff revenue will fund planned tax cuts, but critics argue it's a national emergency and a blatant attempt to reduce the US trade deficit to zero.
* This move is likely to shift factories from Asia to China and push companies to adjust their supply chains.
* Experts warn that shifting factories will take years, while tariffs on East Asian countries will hike prices of consumer goods quickly.
* The rest of the world is expected to respond with retaliatory measures, potentially leading to a messy global trade war.
* Consumers may also have a role in shaping the outcome, as they can choose to boycott US brands and services or opt for cheaper alternatives from other countries.
* The impact on the economy will likely be significant, including inflation spikes and interest rate hikes.
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