What Happens to Global Trade If ‘the W.T.O. Is Toast’?

Published On Feb 14, 2025, 4:59 AM

President Trump has announced new tariffs on imports from various countries, aiming to shift the U.S. trade dynamics by leveraging its position as the world's largest importer. This move is viewed as a challenge to the global free trade system established after World War II and raises concerns over potential retaliation from other nations, which could lead to increased global tariffs and higher prices for consumers.

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The announcement of new tariffs could lead to heightened market volatility as companies with significant international exposure might face increased costs and reduced demand abroad. Especially, companies engaged in global supply chains could see profit margins affected negatively.

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