Thu, 08 Jan 2026

Thu, 08 Jan 2026 How tariff disruption will continue reshaping the global economy in 2026

Trump's import levies are still changing the patterns of international trade.

* The US economy grew by 4.3% between July and September, its strongest annual growth in two years.
* Despite this, global economic growth is expected to slow to 3.1% in 2026 due to Trump's tariffs, according to the International Monetary Fund (IMF).
* The IMF predicts that the global economy will grow at a slower rate than previously forecast due to the impact of tariffs on trade.
* Other economists, including Maurice Obstfeld from the Peterson Institute for International Economics, agree that the tariffs have had a negative impact on the global economy.
* However, some economists argue that the damage caused by the tariffs has been offset by the strong growth of the US consumer market and investments in artificial intelligence (AI).
* Trump's trade policy aims to re-industrialize the US economy and limit the inflow of foreign-made goods.
* The number of Americans in manufacturing jobs has fallen slightly since Trump's second term began, but investors are pouring money into making cars, ships, and pharmaceuticals in the US.
* China's economy is expected to reach $20tn this year, but trade relations between China and the US remain strained.
* A meeting between Xi and Trump in April is seen as crucial in resolving outstanding issues between the two countries.
* The EU is cracking down on cheap Chinese imports, which are becoming increasingly reliant on European consumers.
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