IDEAS home Printed from https://ideas.repec.org/a/abq/mccss1/v3y2024i4p203-215.html

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://journal.50sea.com/index.php/MC/article/view/1267/1802
    Download Restriction: no
    File URL: https://journal.50sea.com/index.php/MC/article/view/1267
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marc J. Melitz & Daniel Trefler, 2012. "Gains from Trade When Firms Matter," Journal of Economic Perspectives, American Economic Association, vol. 26(2), pages 91-118, Spring.
    2. Mary Amiti & Stephen J. Redding & David E. Weinstein, 2019. "The Impact of the 2018 Tariffs on Prices and Welfare," Journal of Economic Perspectives, American Economic Association, vol. 33(4), pages 187-210, Fall.
    3. repec:wbk:wbpubs:38030 is not listed on IDEAS
    4. repec:wbk:wbpubs:39846 is not listed on IDEAS
    5. Pol Antràs & Davin Chor, 2021. "Global Value Chains," NBER Working Papers 28549, National Bureau of Economic Research, Inc.
    6. 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..
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Shu & Shen, Chen, 2025. "Large tariff cuts and corporate hedging: Evidence from interest rate swaps," Economics Letters, Elsevier, vol. 257(C).
    2. Yang, Jijun & Liu, Yifan & Dai, Feng & Ni, Jinlan, 2025. "The effects of consumer goods tariff reductions on market competition in China," Economic Modelling, Elsevier, vol. 151(C).
    3. Haoyuan Ding & Bo Pu & Tong Qi & Kai Wang, 2022. "Valuation effects of the US–China trade war: The effects of foreign managers and foreign exposure," Journal of Economic Surveys, Wiley Blackwell, vol. 36(3), pages 662-683, July.
    4. Mary Amiti & Sang Hoon Kong & David Weinstein, 2020. "The Effect of the U.S.-China Trade War on U.S. Investment," NBER Working Papers 27114, National Bureau of Economic Research, Inc.
    5. Gustavo de Souza & Haishi Li & Ziho Park & Yulin Wang, 2025. "Trade Policy Uncertainty and Supply Chain Disruptions: Firm-Level Evidence from "Liberation Day"," CESifo Working Paper Series 12285, CESifo.
    6. Jiahui Chen & Guangyu Nie, 2023. "Valuation Effects of US–China Trade Conflict: The Role of Institutional Investors," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(6), pages 56-78, November.
    7. Kalina Manova & Dennis Novy & Aaron Tang & Thomas Sampson & Kalina B. Manova, 2026. "Tariff Confusion," CESifo Working Paper Series 12787, CESifo.
    8. Alessandria, George & Khan, Shafaat Yar & Khederlarian, Armen, 2024. "Taking stock of trade policy uncertainty: Evidence from China’s pre-WTO accession," Journal of International Economics, Elsevier, vol. 150(C).
    9. Lukas Boer & Lukas Menkhoff & Malte Rieth, 2023. "The multifaceted impact of US trade policy on financial markets," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 38(3), pages 388-406, April.
    10. Hong Ma & Lingsheng Meng, 2023. "Heterogeneous impacts of the Section 301 tariffs: Evidence from the revision of product lists," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(1), pages 164-190, February.
    11. Mukunoki,Hiroshi, 2025. "A Theoretical Perspective on the Economic Effects of U.S.–China Trade Disputes," IDE Discussion Papers 953, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    12. Pol Antràs, 2020. "De-Globalisation? Global Value Chains in the Post-COVID-19 Age," NBER Working Papers 28115, National Bureau of Economic Research, Inc.
    13. Klotz, Richard & Sharma, Rishi R., 2023. "Trade barriers and CO2," Journal of International Economics, Elsevier, vol. 141(C).
    14. Calani, Mauricio & Margaretic, Paula & Moreno, David, 2025. "Navigating trade uncertainty: The role of trade financing and the spillover effects," Journal of International Economics, Elsevier, vol. 153(C).
    15. Besedes, Tibor & Kohl, Tristan & Lake, James, 2020. "Phase out tariffs, phase in trade?," Journal of International Economics, Elsevier, vol. 127(C).
    16. Karin Mayr-Dorn & Gaia Narciso & Duc Anh Dang & Hien Phan, 2023. "Trade diversion and labor market adjustment: Vietnam and the U.S.-China trade war," Economics working papers 2023-04, Department of Economics, Johannes Kepler University Linz, Austria.
    17. Benguria, Felipe & Choi, Jaerim & Swenson, Deborah L. & Xu, Mingzhi (Jimmy), 2022. "Anxiety or pain? The impact of tariffs and uncertainty on Chinese firms in the trade war," Journal of International Economics, Elsevier, vol. 137(C).
    18. Pablo Fajgelbaum & Pinelopi Goldberg & Patrick Kennedy & Amit Khandelwal & Daria Taglioni, 2024. "The US-China Trade War and Global Reallocations," American Economic Review: Insights, American Economic Association, vol. 6(2), pages 295-312, June.
    19. Ruohan Wu & Mario J. Miranda, 2023. "Dynamic impacts of intermittent trade conflicts," The World Economy, Wiley Blackwell, vol. 46(3), pages 681-701, March.
    20. Mau, Karsten & Vicencio , Antonio & Xu, Mingzhi & Zheng, Yawen, 2026. "From Shipments to Supply Chains: Mining Input-Output Links from Firm-level Trade Flows," Research Memorandum 001, Maastricht University, Graduate School of Business and Economics (GSBE).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abq:mccss1:v:3:y:2024:i:4:p:203-215. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Shehzad Hassan (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.