The current economic climate is rife with ominous signs as Croatian economic analyst Petar Vuskovic warns that the tariffs introduced by U.S. President Donald Trump have set the stage for a global recession. Vuskovic draws a vivid comparison, stating that if inflation fuels recession, these tariffs are the matches igniting the blaze.
Speaking on N1 Television, Vuskovic declared, "It is not a question of whether the economic Armageddon will hit us because it has already hit us." He noted that the collapse of global stock markets—with European stocks sinking for a fourth consecutive session and the S&P 500 extending its losses—highlights deep investor anxiety and signals the onset of a new economic downturn.
Companies around the world are already resorting to layoffs, and the situation has been described as "practically worse" than the hardships experienced during the COVID-19 pandemic. The ripple effects are evident across the board, impacting state budget revenues, business owners, investors, and employees alike.
In Croatia, although exports to the United States total 587 million euros annually—less than 10 percent of Europe’s overall exports—the tariffs are expected to drive up production costs and raise prices on imported goods like computer components. Key sectors including wines, oils, medicines, sardines, machinery, and wood products face heightened risks, which could further depress budget revenues.
The recent executive order imposing a 10-percent minimum baseline tariff along with higher rates on certain trading partners has spurred widespread opposition. Vuskovic warned, "Trump will protect the richest with tariffs, and will make his citizens poorer," shedding light on the far-reaching negative impact of such protectionist policies.
As global markets continue to react and uncertainty mounts, experts are calling on policymakers and business leaders to closely monitor these developments and prepare for the long-term challenges of inflation and recession.
Reference(s):
cgtn.com
