Chaotic tariff policy of the USA may lead to a global economic crisis – Oleksiy Herashchenko

The unstable tariff policy of the U.S. poses serious challenges and could potentially lead to a global economic crisis.

This opinion was expressed by Oleksiy Herashchenko, an economist and lecturer in finance at KMBS, during a discussion at the Media Center Ukraine.

“If we look at tariffs as a tool, I would compare them to a surgical scalpel. For example, if the tariff was 3% and now it is 5%. This happens after lengthy calculations and agreements, and it is usually announced that the tariff will come into effect next year or even later,” he explained.

According to the analyst, predictability is a key condition for the normal functioning of business, but the current situation deprives companies of clear guidelines.

“This means that today we actually cannot know what the rules of the game will be next week; they change every day. But planning any investment projects or deciding whether to locate a particular production facility or factory in the US requires clear rules that will not change for a long time,” the expert added.

Oleksiy Herashchenko believes that the consequences of such a chaotic US policy may soon affect global economic indicators.

“So this policy is absolutely chaotic and potentially leading to a global economic crisis. My prediction is that in a few weeks, both in this quarter and in the next, we will see alarming levels of economic indicators. That is, what is happening with GDP, what is happening with production volumes, etc. And these swings that are happening in the markets today, – everybody is watching what is happening in the securities market, – these swings will continue for some time,” he added.

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