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The Global Impact of U.S. Tariff Policies: Repercussions and Consequences for the International Community

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  • Daniyal Sohail

    (RIPHAH International University)

Abstract

This paper examines the far-reaching consequences of the 2025 U.S. tariff policy under the Trump administration, which imposed a universal 10% tariff on all imported goods. The research explores the multidimensional impacts of this policy shift, including stock market downturns in Asia, volatility in commodity prices such as gold, and significant depreciation of the U.S. dollar against major currencies. It further analyzes disruptions in global supply chains, increased inflationary pressures, and the specter of stagflation in both developed and emerging economies. Retaliatory tariffs from key trading partners, including China and the European Union, reveal a growing tendency toward economic nationalism and rising global protectionism. The study draws on real-time financial data, policy statements, and economic indicators to present a nuanced view of how aggressive trade strategies by a global hegemon can reshape international economic relations, potentially triggering global recessionary trends. Findings suggest that such policies may offer short-term leverage but pose serious risks to long-term global economic stability and cooperation.

Suggested Citation

  • Daniyal Sohail, 2024. "The Global Impact of U.S. Tariff Policies: Repercussions and Consequences for the International Community," Magna Carta: Contemporary Social Science, 50sea, vol. 3(4), pages 203-215, October.
    • Handle: RePEc:abq:mccss1:v:3:y:2024:i:4:p:203-215
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    References listed on IDEAS

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    3. Kyle Handley & Nuno Limão, 2018. "Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States," World Scientific Book Chapters, in: Policy Externalities and International Trade Agreements, chapter 5, pages 123-175, World Scientific Publishing Co. Pte. Ltd..
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    5. World Bank, 2023. "Global Economic Prospects, June 2023," World Bank Publications - Books, The World Bank Group, number 39846.
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