Media Predicts Trump Tariffs’ Effect on Global Economy

(MENAFN) A global economic blow from US President Donald Trump’s aggressive tariff policies is projected to drain $2 trillion from the international economy by 2027, due to disrupted trade and investment flows, a news agency disclosed on Monday.

Since reclaiming the presidency in January, Trump has reignited his protectionist trade agenda, introducing a series of import duties aimed at shielding domestic industries and eliminating trade imbalances.

In April, he announced a universal 10% duty on all foreign goods entering the US, alongside steeper tariffs directed at nations identified as engaging in "unfair trade practices."

While some of these measures were temporarily halted to allow room for trade talks, they are expected to go into force by August 1.

According to the news agency, the total burden of US tariffs has soared to its highest point since the 1930s, standing at roughly six times the rate in place when Trump first assumed office.

The report notes that these measures are already prompting corporations to halt investment projects, reorganize global supply routes, and shrink profit margins to counter rising operational costs.

“The hit to the world economy will reach $2 trillion by the end of 2027 relative to its pre-trade war path,” the article declares, emphasizing the long-term toll on global growth.

In addition, international direct investment—seen as essential for sustainable economic expansion—is on course to fall again in 2025, following an 11% reduction last year, according to a new report from the United Nations.

Commenting on the situation, Daniel Harenberg, chief economist at Oxford Economics, warned that the tariff disputes are “bad for investment,” likening them to “a tax that puts sand in the wheels of supply chains and global trade.”

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