The Ripple Effect: How US Policy on Tariffs and Immigration Threatens the World

A new report from a global financial authority details the powerful ripple effect of US policy, warning that Washington’s stance on trade tariffs and immigration threatens not just its own economy, but the entire world. This comes despite a short-term upgrade in the 2025 global growth forecast to 3.2%.
The report argues that the full, negative impact of Donald Trump’s tariffs is yet to be felt globally. The initial shock was absorbed, but a longer-term slowdown in business investment is anticipated as companies worldwide adjust to a more fragmented and uncertain trade environment. This leads to a long-term outlook that is described as “dim.”
The analysis also provides a stark warning about the domestic and international consequences of the US crackdown on immigration. It projects a direct hit to US GDP of up to 0.7% and warns of inflationary pressures. This slowdown in the world’s largest economy would inevitably have a chilling effect on global growth.
The United Kingdom’s forecast highlights its vulnerability to these global ripples. While its own growth has been modestly upgraded to 1.3%, it is facing the highest projected inflation in the G7. This is partly a domestic issue, but it is exacerbated by a volatile global environment heavily influenced by US policy decisions.
The report also cautions about the stability of US-dominated financial markets. The warning of a potential “correction” in “stretched” tech stocks is another example of how a shift within the US could trigger a worldwide economic event, highlighting the interconnectedness of the global system.