Trump Tariffs Cost Global Economy $2 Trillion, Hit Poland $2 Billion

President Donald Trump's trade policies, including tariffs on European and other goods, have thus far shown a muted impact on U.S. consumer inflation but may lead to significant cost increases later this year as supply chains adjust. A working paper by economists from Harvard and Universidad de San Andrés found sharp price increases in imported goods since February, with domestic goods also rising more gradually. The U.S. recently reached a trade agreement with the European Union imposing 15% tariffs on most EU imports, which Poland's Prime Minister Donald Tusk says could cost his country around $2.1 billion, with broader economic impacts expected on both sides of the Atlantic. Despite the tariffs being lower than initially threatened, Tusk warns of substantial losses to exporters and calls for complex trade agreements over a tariff war. Globally, the tariff campaign is projected to reduce the world economy by $2 trillion by 2027 due to slowed investment, disrupted supply chains, and reduced foreign direct investment, with organizations like the IMF and OECD downgrading growth forecasts. The administration views the tariffs as a success for U.S. economic leverage, while economists warn of gradual and widespread economic consequences.