Trump tariffs fuel forecast of worst global growth for six years
Published On Jan 16, 2025, 1:00 PM
The World Bank has warned that the global economy is expected to grow by only 2.7% this year, the weakest since 2019, primarily due to concerns over new U.S. tariffs that could negatively impact trade. Tariffs, part of President Trump’s economic strategy, could lead to higher import costs and potentially retaliatory measures from other countries, further straining worldwide economic growth. This reduction in growth could hinder improvements in living standards internationally. The report also highlights the risks posed by high interest rates and uncertainty in economic policies.
Stock Forecasts
SPY
Negative
Given the current landscape of increasing tariffs and potential economic slowdowns, companies reliant on importing goods or those in industries that may face raised costs could see their stock prices decline. Conversely, companies focused on domestic production could benefit from such tariffs as they might gain market share.
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