Bloomberg experts warn that Donald Trump's plans to adjust U.S. import tariffs could send shockwaves through the global economy and heighten trade tensions worldwide.
In his campaign, Trump outlined two major economic reforms: significantly raising tariffs on all imports, with no exceptions, and reducing the corporate tax rate from 21% to 15%.
The proposed tariff increases on imports could range from 10% to 20% and reach as high as 60% for Chinese products.
During a rally last September, Trump introduced a proposal to impose tariffs up to 100% on countries trading outside the dollar-based financial system, aiming to protect the dollar’s global position.
Bloomberg Economics analyst Andrey Isakov commented, “We have not seen tariffs this high in U.S. history. Our estimates indicate that the U.S. share in international trade would take a significant hit; the decline in U.S.-China trade alone could lower the U.S. share from 20% in the late 2000s to around 8.5% within the next five to seven years.”
Isakov added, "The impact on the U.S.'s trade partners and other economies will vary, but neighboring countries like Mexico and Canada would be the hardest hit, potentially losing up to 2% of GDP over a four-year period."
Bloomberg also noted that such measures could heavily damage the Chinese economy, as Trump’s plans to impose a 60% tariff on Chinese goods could cripple trade between the two nations. Meanwhile, Europe would likely feel compelled to strengthen its economic independence in response to these disruptions.
%20has%20found%20more%20than%201,000%20galaxies%20mysteriously%20resembling%20our%20own%20Milky%20Way%20hiding%20out%20in%20the%20early%20universe..jpg)
