Many countries around the world are likely to deal with economic slowdowns after the new prices of US President Donald Trump on imports, an economist said.
“This changes the game, not only for the American economy, but for the world economy. Many countries will probably be found in a recession,” American economic research chief in Fitch Ratings, in a note on Wednesday.
Sonolo’s assessment occurred after Trump announced tariffs from 10% to 49% on imports from all countries with prices on American products.
The new samples bring the United States pricing rate to around 22% – a level lastly given around 1910, according to Fitch analysis. It is also significantly higher than the rate of 2.5% of 2024.
“You can throw most of the forecasts through the door, if this rate rate remains on for a long time,” wrote Sonola.
We do not know how long these prices could last. The Treasury Secretary, Scott Bessent, told Bloomberg in an interview on Wednesday that Wednesday prices were “the high -end of the number, unless there is reprisals”.
“We will see where it goes from here,” said Bessent.
Asia is particularly struck. The greatest economy in the region, China, faces 54% of samples, 34% of which in the reciprocal prices announced on Wednesday and the preexisting tasks of 20%.
American allies Japan and South Korea are in danger of 24% and 25% respectively in reciprocal rates. India faces 26% of tasks.
The countries of Southeast Asia – many of which have become poles of the supply chain for companies diversifying manufacturing activities from China – are among the most affected by the new American rates.
Vietnam, Thailand, Indonesia and Malaysia are faced with rates of 46%, 36%, 32%and 24%, respectively.
Meanwhile, Trump hit the European Union, a key ally, with 20% prices.
businessinsider
