Mark Carney warns that US economic leadership is over due to Trump's tariff policies

From Yahoo Finance: 2025-04-12 06:04:00

Canadian Prime Minister Mark Carney warns that Trump’s “Liberation Day” could mark the end of America’s economic dominance globally, as reciprocal tariffs on U.S. autos were announced. World leaders fear dire consequences from the ongoing trade war, with EU Commission Chief Ursula von der Leyen and Japan’s Prime Minister Shigeru Ishiba voicing concerns. The global economy heavily relies on American consumption, with $3.17 trillion worth of imports in 2023. Carney cautions that Trump’s tariff policy could rupture the global economy, as global stock markets have lost $9.5 trillion since April, increasing the likelihood of a U.S. recession to 60%.

To prepare for potential economic challenges ahead, consider building a larger emergency fund, cutting discretionary spending, and adding a margin-of-safety to your budget. Estimates suggest the average American household could lose $4,700 in purchasing power due to the trade war. Investing in assets like gold, which has increased by 16% in the past six months, could provide a safe haven during market volatility.



Read more at Yahoo Finance: Mark Carney warns the 80-year period of US economic leadership is over. How to survive the ‘new reality’