Global Economy on Edge: Tariffs Stir Uncertainty

Nomura's report highlights the global economic uncertainty fueled by US President Trump's aggressive tariff policies. Fears of an economic slowdown loom as businesses may delay investments due to fluctuating trade costs. With volatile markets and geopolitical strategies in play, a cautious outlook persists.

A report by Nomura warns that ongoing tariff uncertainties under US President Donald Trump's administration could significantly delay business investments and potentially trigger a global economic slowdown. Trump's aggressive tariff policy has unsettled industries globally, contributing to financial market uncertainties.

Nomura's analysis describes the current tariff strategy in three phases: shock, backlash, and tactical recalibration. Despite a brief pause following backlash from economic advisers and political donors, the policy's repercussions are already apparent, notably affecting business investment decisions and market stability.

The report cautions that businesses may now consider extreme tariff scenarios in long-term planning, potentially stalling investment for years. Moreover, Trump's geopolitical maneuvers, such as courting North Korea and Russia, have failed to isolate China. This complex landscape poses ongoing risks to global economic stability.

(With inputs from agencies.)