US President Donald Trump’s recent tariff announcements are causing widespread concern among economists and business leaders worldwide. The 10% minimum tariff imposed on all countries has led to a scramble for deals with the US, with some countries securing exemptions or reduced rates.
However, experts warn that the impact of these tariffs will vary greatly from place to place, and their effects will be felt long after the initial announcement. The UK deal, which included carveouts for steel and beef exports, is seen as a rare exception. Other countries, including Canada and India, are facing significant increases in tariffs.
The situation is further complicated by Trump’s tendency to backpedal on his tariffs, often under pressure from other countries or after negotiations have reached an impasse. This lack of consistency has raised concerns among investors, who are struggling to predict the outcome of these policies.
As the deadline for the tariff announcements approaches, US businesses are bracing themselves for potential price hikes and supply chain disruptions. The impact will be felt across industries, from electronics to automotive manufacturing.
Experts warn that the US economy is on the verge of recession, with rising prices, falling employment, and disappearing government assistance creating a perfect storm. While some have speculated that Trump may reverse his tariffs or scale back their scope, it’s unlikely that this will happen without significant pressure from other countries or within the administration itself.
Instead, many predict that Trump will continue to raise tariffs, leading to higher walls between nations and a further escalation of global tensions. As the situation continues to unfold, one thing is clear: the consequences of these tariffs will be felt for years to come.
In a recent statement, economist Cecilia Malmström noted that “the highest transatlantic tariffs in 70 years” are now in place, highlighting the unprecedented nature of this crisis. The global economy is bracing itself for what could be one of its worst crises in decades.
Source: https://www.counterpunch.org/2025/08/12/trumps-tariff-tsunami