- Title: Trump's tariffs will have a 'chilling effect' on global economy, says analyst
- Date: 3rd April 2025
- Summary: KHAN YOUNIS, GAZA (APRIL 3, 2025) (REUTERS) PEOPLE WALKING AMID RUBBLE AND DESTROYED BUILDINGS PEOPLE RIDING A TUK-TUK CARRYING BELONGINGS BETWEEN THE RUBBLE VARIOUS OF PEOPLE IN THE STREETS (SOUNDBITE) (Arabic) DISPLACED PALESTINIAN FROM RAFAH, SAEED ABU LATIFA, SAYING: "We could barely believe that we had arrived back in Rafah. We left Rafah under destruction, under bomb
- Embargoed:
- Keywords: Donald Trump Robert Kahn Tariffs global economy trade war
- Location: VARIOUS LOCATIONS
- City: VARIOUS LOCATIONS
- Country: US
- Topics: North America,Government/Politics,International Trade
- Reuters ID: LVA006394803042025RP1
- Aspect Ratio: 16:9
- Story Text: U.S. President Donald Trump’s new trade tariffs are “chaotic” but relatively simplistic according the Eurasia Group’s Robert Kahn on Thursday (April 3), and have the potential to send the global economy into downturn
President Donald Trump's move to impose sweeping tariffs on U.S. imports sparked threats of retaliation on Thursday, as companies and governments rushed to count the costs from an escalating trade war that threatens to shake up global alliances.
Managing director Kahn noted that Trump was using tariffs as leverage in bilateral negotiations separate from trade policies.
“If there is, as I suspect, limited "dealability", because this is an administration that is more protectionist, I think we could see a significant economic dislocation,” he warned in an interview with Reuters.
The penalties announced on Wednesday unleashed turbulence across world markets and drew condemnation from other leaders facing the end of an era of trade liberalization that has shaped the global order for decades.
Trump said he would impose a 10% baseline tariff on all imports to the United States and higher duties on some of the country's biggest trading partners, hammering goods from premium Italian coffee and Japanese whisky to sportswear made in Asia.
The resulting uncertainty around Trump’s next steps and retaliation from other countries would have a “chilling effect” on the global economy, said Kahn.
“If you're, say, a large multinational corporation, even if you see opportunities in this new restructured global trading setting, you're not going to be making long term irreversible commitments of capital at this moment,” Kahn said.
Facing 54% tariffs on exports to the U.S., the world's No. 2 economy China vowed countermeasures, as did the European Union, as Washington's allies and rivals alike criticised moves they fear will deal a devastating blow to global trade.
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