US import tariffs to further slump global economic growth, say experts

JOHANNESBURG - Economic experts believe the latest import tariffs imposed by the United States (US) will further slow down global economic growth, adding to existing risks.

US President Donald Trump rattled global markets last week when he announced a 10% baseline tariff on all goods coming into the US.

Trump also imposed higher tariffs on some countries he said were undercutting the US on trade.

While the universal 10% levy remains, Trump has since announced a 90-day pause on the higher tariffs.

The escalating global trade war has plunged financial markets into the steepest rout since the COVID-19 pandemic five years ago.

READ: Trump admits trade war 'cost' as markets hit

With the initial impact of a massive stock market drop now clear, what comes next for the global economy may be another tough pill to swallow.

The global economy in 2024 was described as resilient. However, the Organisation for Economic Co-operation and Development said some signs of weakness were appearing against a backdrop of lingering inflation and an uncertain policy environment.

The chief investment strategist at Investec Wealth and Investment, Chris Holdsworth, weighed in on the impact of the tariff crisis on the year’s outlook.

“I think there is a material risk that the year ahead is going to be difficult; there’s a reasonable chance that the US will go into a recession and a few other countries go into recession too. And this is one of those years where we’ll have to have our hard hats on.”

In the last week, financial services company JP Morgan raised its forecast of the global economy entering a recession from 40% to 60% by the end of the year.