U.S. Tariffs Spark Global Economic Ripples in 2025
As 2025 draws to a close, America's aggressive tariff measures—some hitting 145%—have reshaped global trade like a TikTok trend gone viral 📈. With $159 billion in added consumer costs this year alone, households are feeling the pinch while economists warn of 1930s-style trade collapse risks.
The Great Recalibration
Developing nations are rewriting playbooks as supply chains stutter. Jeffrey Sachs, renowned economist, calls the strategy "statecraft malpractice," comparing it to the Smoot-Hawley tariffs that worsened the Great Depression. Meanwhile, U.S.-China trade cooled significantly, with the deficit dropping to $160 billion through September 2025—though experts say this comes at steep hidden costs.
Debt Dominoes Teeter
Geopolitical analyst Mike Billington highlights the $2 quadrillion derivatives time bomb 💣 in Western finance systems. British professor Michael Dunford draws parallels to Nixon's 1971 Bretton Woods shakeup, suggesting 2025's policies might force currency realignments and manufacturing relocations—a potential game-changer for Global South economies still recovering from 1980s debt shocks.
What's Next?
With $8.66 trillion in short-term U.S. debt and allies questioning Washington's leadership, 2026 could see either a trade détente or deeper fragmentation. As developing countries explore new partnerships, one thing's clear: 2025's protectionist pivot will echo through supply chains and supermarket prices worldwide 🛒🌐.
Reference(s):
cgtn.com





