'Donald-25' Economic Crisis: Trump's Tariffs Trigger Trade Turmoil and Looming Recession
April 18, 2025
Trump's strategy involves increasing US tariffs by approximately tenfold, with the aim of restoring manufacturing employment to levels reminiscent of the 1970s, a move described as a 'mind virus'.
The current trade uncertainty mirrors the initial confusion experienced during the Covid-19 pandemic, leading to a 'lockdown' effect on trade between the US and other countries.
In conclusion, the critique of Trump's trade strategy suggests it undermines potential bipartisan support for policies that could positively impact the economy.
The current economic crisis, referred to as 'Donald-25', is drawing parallels to the impact of the Covid-19 pandemic, largely due to President Trump's protectionist trade policies.
Since 2008, the average US tariff rate has skyrocketed from an all-time low of 1.27% to over 20% by 2025, marking the most significant self-imposed economic sanctions in decades.
These tariffs have severely disrupted goods imports from China, creating supply shocks comparable to the energy crisis of the 1970s, which are now affecting everyday consumer products.
The economic fallout from these tariffs is expected to result in price increases, job losses, and a potential recession, with JPMorgan predicting a likelihood of economic contraction later in 2025.
As a consequence of Trump's aggressive trade policies, foreign investors are retreating from US markets, which poses a significant threat to the nation's financial stability.
Market reactions to Trump's tariff announcements have already caused notable declines in stock prices and a weakening dollar, raising concerns about a financial disaster similar to past crises.
Travel to the US has also been significantly impacted, with a 17% drop in visitors from Western Europe and a staggering 70% decrease in Canadian flight reservations, reflecting disruptions akin to those seen during Covid-19.
Summary based on 1 source
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The Times • Apr 18, 2025
Donald-25: the new virus that’s devastating the world economy