The introduction of steep tariffs by President Trump has yet to yield catastrophic consequences for the global economy, despite early warnings from analysts. The US economy continues to show resilience with low inflation and strong consumer spending. However, concerns remain regarding potential future impacts. Major trade partners might face tariffs of 25 to 40 percent unless agreements are reached. Economic uncertainty linked to tariffs could affect business decisions, and preliminary agreements indicate substantially higher rates ahead for nations like Vietnam, China, and the EU.
The US economy, the single biggest driver of global growth, has defied expectations across numerous metrics, with inflation staying low and employment remaining robust.
Even with limited fallout from Trump's tariffs, economists warn the US and global economies may just be experiencing the calm before the storm.
Joseph Foudy, an economics professor at NYU Stern, stated that when tariffs are at 20 percent or more, firms stop importing altogether and economic activity declines.
Tariff negotiations are leading to increased rates, with Trump's agreements indicating minimum tariff rates of 20 and 30 percent for various countries.
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