Trump’s Tariff Shake-Up: Global Trade at a Crossroads

U.S. President Donald Trump’s new tariffs have sent shockwaves through global markets, with a staggering 145% levy on Chinese imports sparking fears of an economic earthquake. Analysts call it a modern-day 'Nixon Shock,' invoking the 1971 currency crisis—but this time, the ripple effects could redraw the world’s trade map.

The New Protectionism Playbook

Under the policy, most nations get a 90-day tariff freeze at 10%, but the Chinese mainland faces steep penalties. University of Sussex Professor Michael Dunford says this reflects America’s attempt to tackle 'ballooning deficits' and 'unmanageable' $8.66 trillion short-term debt. 'The U.S. is dismantling the international economic system,' he warns, drawing parallels to historic financial gambits.

Global South in the Crosshairs?

Emerging economies, already strained by inflation and debt, risk collateral damage. Trade alliances like ASEAN and RCEP are gaining momentum as nations seek alternatives—a shift Dunford calls 'inevitable.' Meanwhile, BRICS-led payment systems and regional currencies hint at a fractured future. 'This isn’t decoupling—it’s rebalancing,' he adds.

What Comes Next?

With the U.S. doubling down and China advocating 'diffusion of development,' the clash could birth a new world order. Will regional blocs overtake globalization? One thing’s clear: adaptability is the new currency.

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Could Trump's tariffs turn global trade topsy-turvy?

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