Global economic uncertainty after the implementation of tariffs by Trump

Writing.- Amidst the growing uncertainty generated by the tariff policies of the president of United States, Donald Trump, the International Monetary Fund (IMF) has projected a global economic growth of just 2.3% for this year, the lowest since 2008 outside of recession periods. This figure reflects trade tensions and the impact of protectionist measures implemented by the US administration.

Trump has imposed a universal 10% tariff on all imports, in addition to extra tariffs on products from countries like China, Canada, and the European Union. These actions have unleashed a trade war that affects both advanced and emerging economies. In response, the IMF has warned that the tariffs could generate inflationary pressures and hinder global economic recovery.

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In May, a U.S. trade court declared most of the tariffs imposed by Trump under the International Emergency Economic Powers Act illegal. However, the government appealed the decision and, on June 11, the Court of Appeals allowed the tariffs to continue while the appeal is resolved. The oral hearing is scheduled for July 31. These policies have generated volatility in the financial markets. On April 2, the Dow Jones index suffered a historic fall of 4,000 points in 48 hours, while the VIX volatility index doubled, reaching levels not seen since the pandemic. In addition, European and Asian stock exchanges recorded significant falls, and the euro depreciated against the dollar. Despite criticism and the lack of concrete results, Trump's support base continues to back his trade policy. The president has announced that in two weeks he will present an ultimatum to several trading partners to reach agreements or impose new unilateral tariffs. However, many of his previous announcements have not materialized, which generates skepticism about the effectiveness of his measures. In summary, the implementation of tariffs by Trump has generated an uncertain global economic landscape, with reduced growth projections and trade tensions that could persist throughout this decade.