Global Trade War Escalates With US Tariffs Hitting 28 Percent

The escalating U.S. tariff policies, including a 145 percent tariff on Chinese imports, have sparked widespread uncertainty and fears of a global trade war reminiscent of the Smoot-Hawley tariffs era, which deepened the Great Depression through retaliatory spirals. While some countries like China, Canada, and Europe have responded with measured retaliation, the risk of a full-scale trade war remains, threatening supply chains, market stability, and global economic cooperation. Businesses and individuals are reacting by hoarding goods and reevaluating cross-border transactions, which have become more complex due to shifting tariffs and regulatory landscapes. Experts highlight the need for strategic economic diplomacy and risk management to navigate the prisoner’s dilemma inherent in international trade conflicts, balancing economic, political, and strategic interests. Recent diplomatic efforts, including meetings among B7 and G7 leaders, focus on addressing the consequences of the trade war and aligning business interests with governmental strategies to avoid further escalation. Overall, the tariff-driven tensions have created a challenging environment for global trade, requiring careful negotiation and cooperation to prevent lasting economic damage.