(VOVWORLD) - Economists say US President Donald Trump’s decision to raise tariffs will have a drastic impact on the global economy’s already volatile markets. The decision comes at a time of increasing public debt and complex geopolitical tensions and could disrupt the global order that has existed for decades.
 US President Donald Trump announces a list of new tariffs at the White House on April 2, 2025. (Photo: Reuters/VNA) |
After President Trump announced the unexpectedly high reciprocal tariffs, concerns grew about a global economic recession, prompting investors to rush to gold as a "safe haven" asset.
The price of gold surged on Thursday to 3,160 USD per ounce before slightly decreasing to 3,151 USD an ounce. Economists predict that the price of gold will see many fluctuations in the coming days. Given the current trend, the short-term target for gold prices is 3,200 USD per ounce.
Meanwhile, the US dollar weakened immediately after Trump’s announcement. The US stock market declined sharply during after-hours trading on Wednesday. Asian markets experienced a dramatic drop on Thursday. Crude oil prices plunged as investors worried that an escalating trade war will pose significant obstacles to global economic growth.
Takahide Kiuchi, chief economist at Nomura Research Institute, said Trump's tariffs carry the risk of destroying the global free trade order the United States itself has spear-headed since the Second World War.
Mark Zandi, chief economist at Moody’s Analytics, described the US’s latest tariff policy as a spark of economic recession.
Kara Reynolds, an economist at American University, echoed Zandi’s view, saying that if businesses and consumers both start to worry and cut back on spending, it could push the economy into a downturn.
 A trader works on the New York Stock Exchange at the opening bell in New York City, the US, on April 2, 2025 (Photo: AFP) |
Initial assessments suggest that in the coming months, the most noticeable impact of the Trump’s administration’s tariff policy will be a significant increase in the prices of many goods. This could usher in a difficult period for many Americans, as essential items for the middle-class, including housing, cars, and clothing will become more expensive. At the same time, it could disrupt alliances that have been built to ensure peace and economic stability.