Trump is turning the USA into a global economic crisis – what threatens now!

Trump is turning the USA into a global economic crisis – what threatens now!

US President Donald Trump took office again in January 2025 and has since been fundamentally reshaping American domestic and foreign policy. These changes have caused uncertainty and concern both in the United States and globally. Many Americans are disappointed by rising prices and inflation, which shows no sign of abating despite Trump's repeated promises to combat these problems. A decisive factor is Trump's rigid tariff policy, which is seen as a contributor to the burgeoning inflation. The current situation is marked by the frustration of the electorate and the impact of its economic decisions on the markets.

A dramatic fall in stock prices, known as a “Trump dump,” surprises many observers, as new phases usually bring a positive reaction from the markets. Still, Trump is unwilling to change course. His foreign policy, which is strongly pro-Russian, is also causing outrage in both the USA and Europe and increasing tensions internationally.

Trump's tariff policy and its consequences

Meanwhile, experts like historian Marc Buggeln are analyzing the effects of Trump's tariff policy. This is seen as a key pillar of his strategy, with which he propagates a move away from globalization. Trump calls this “Liberation Day” and often speaks of the need to free the U.S. from adverse global influences. While parts of his electorate see globalization as harmful, it is clear that the USA still has the highest average income per capita among large industrialized nations and is experiencing positive economic development overall.

However, globalization is leading to noticeable social inequality that has negatively affected certain segments of the U.S. workforce. This social inequality, combined with a low level of redistribution of wealth, is considered to be one of the reasons for the feeling of betrayal among the population. In this context, the Trump administration is blaming other nations for perceived unfair trade practices. Buggeln warns that this feeling can be dangerous and causes irrational behavior.

Economic prospects

Trump's aggressive tariff policy is seen by many economists as damaging to the international trading system. There is a risk that it could jeopardize the stable economic indicators, which are currently better than in the 1930s. Historically, tariffs have not been viewed as a trigger for economic crises, but rather as a response to pre-existing economic problems. Whether the global economy slips into a crisis depends largely on the reaction of other countries. A protectionist response could indeed lead to serious economic ramifications.

At this critical period in US politics, it remains to be seen how Trump's upcoming decisions and strategies will affect the domestic economy and international relations. There are concerns about the longer-term consequences of his policies, both for the US population and for the global trading context.

For more information on Trump's current policies, visit RND or daily news.