Duties: World Trade War Declared by Trump – What will the duties announced

Donald Trump’s duties announced during US « release », as he called it, are further burdened by the already problematic world economy.

To Reuters He notes that the last package of duties announced is coming to hit it while it has barely recovered from the post-phenomenon rise of inflation, plagues from the record and disturbed by geopolitical disputes.

Depending on how Trump and leaders of other states will move now, it can also be a turning point for a globalized system that has so far considered America’s power and credibility, which was its main ingredient.

Donald Trump’s duties

‘Worse performance, more uncertainty, world recession’

« Trump’s duties are at risk of destroying the world free trade class in which the United States themselves pioneered after World War II, » said Takahide Kucci, head of the Nomura Research Institute.

However, in the coming months, the simple and clear effects of price rise – and therefore reduce demand – due to new taxes imposed on thousands of goods purchased and sold by consumers and businesses across the globe will prevail.

« I see it as a slide of the American and world economy for worse performance, more uncertainty and possibly something we could call a world recession, » said Antonio Fatas, a macro-economist at the Insead Business School in France.

« We are moving into a world that is worse for everyone because it is more ineffective, » said Fatas, who has been a consultant for the International Monetary Fund and the World Bank.

‘This changes the data’

Speaking to the White House Rhodes, Trump said he would impose a 10% basic duty on all imports and presented the chart that reflects higher duties on some of the largest US partners, including 34% in China and 20% in the European Union.

The 25% duty for cars and car spare parts had been confirmed earlier.

Trump said duties would strategically return to vital construction opportunities in the United States.

The US duty rate for all imports jumped to 22% – a percentage last observed around 1910 – from just 2.5% in 2024, said Sonola, head of US financial research at Fitch Ratings.

« This changes the data, not only for the US economy, but also for the world economy, » Sonola said. « Many countries will probably lead to recession. »

IMF’s « correction » in its prediction for 2025

IMF Director General Kristalina Georgieva told Reuters this week that she is not seeing a world recession at the moment. He added that the Fund is soon expected to make a small downward « correction » of its prediction for 2025 for a global growth of 3.3%.

However, the impact on national economies will have large divergences, given the range of duties ranging from 10% for Britain to 49% for Cambodia.

If the result is a broader trade war, this will have an even greater impact on producers such as China, who will have to look for new markets in front of withering consumer demand around the world.

And if the duties push the US itself to the recession, this will greatly burden the developing countries whose fortunes are closely linked to those of the world’s largest economy, reuters concludes.