The trade war initiated by U.S. President Donald Trump against 60 countries around the world could have serious negative consequences for Ukraine’s allies and partners. This, in turn, may reduce their ability to support Ukraine in its war with Russia. Such conclusions are drawn in a review by the investment group ICU.
This is reported by Finway
“For Ukraine, the predominant negative consequence of the global trade war may be diminished opportunities for receiving financial assistance from weakened partners”
, the experts note.
The review also emphasizes that the decline in global commodity prices will affect Ukrainian exports, particularly in the mining and metallurgy sector. At the same time, the introduction of new tariffs may have positive effects, such as lower prices for oil and natural gas, which will ease the import burden. Barriers that may be created by the EU and other countries for American agricultural companies will also open access for Ukrainian agricultural products to international markets.
Impact on Global Markets
The significant increase in import tariffs by the American administration has already led to a collapse in the prices of risky assets across many market segments, as well as an influx of funds into the sovereign bonds of developed countries. This is due to the fact that the scale of the imposed tariffs exceeded investors’ expectations.
“The Trump administration’s decision significantly raises the risks of recession and will, in any case, lead to a substantial slowdown in economic growth. Moreover, the opacity and chaotic nature of the entire tariff increase process exacerbate the uncertainty, which causes damage no less than the tariff increases themselves”
, the experts assert.
Experts also warn that countermeasures from U.S. trading partners may lead to even more radical actions from the White House, including Trump’s threats to impose an additional 50% tariff on imports from China in response to Chinese tariffs on American goods. This threatens to disrupt international ties and significantly slow down the global economy.