The ‘America First’ trade agenda advanced by the current US administration, featuring higher tariffs and stricter trade controls, poses a threat of increased barriers to trade worldwide. The scale and geographical scope of these tariffs mean they are set to exert immensely disruptive effects on trade. Moreover, the ‘on/off’ transactional approach to tariff setting adopted by the US — reflected in constantly changing reciprocal tariff rates and implementation dates — has created unprecedented global turmoil, causing significant uncertainty in international trade, generating confusion in global financial markets and fragmenting global trade flows.
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The Ripple Effects of US Tariffs