Global economic fallout looms as Trump pushes tariff agenda

Donald Trump's renewed push for tariffs is raising fears of a global recession, with economists and trade partners voicing alarm. The former US president has imposed a 12.5% tariff on Australian goods and threatened the European Union with 'substantial' levies over fines on American tech giants. Experts have labeled the approach 'economic neanderthal', warning it risks a spiral of retaliation. Australia, a close US ally, now faces higher export costs for key sectors such as agriculture and manufacturing. The tariffs come amid broader trade tensions, including unresolved disputes with China. For Australian businesses, the immediate impact is uncertainty: exporters must decide whether to absorb costs or pass them on. Consumers may also feel the pinch if prices rise. The European Union has vowed to respond firmly, raising the prospect of a transatlantic trade war. Analysts say the moves undermine the rules-based trading system that has underpinned global growth for decades. The US actions are partly driven by complaints that trading partners unfairly tax American tech companies. But critics argue that tariffs are a blunt tool that hurt domestic industries reliant on imported inputs. For now, markets remain jittery. The Australian dollar has weakened, and investor confidence is fragile. What happens next depends on whether Trump's campaign rhetoric translates into policy if he returns to office. For everyday Australians, the key risk is slower economic growth and higher inflation, which could affect jobs and household budgets.