Trump’s Tariffs Are Already Stunting World Growth While Markets Shrug

The article discusses the impact of President Trump's tariffs on the global economy. It suggests that the protectionist policies are already slowing investment and disrupting supply chains, hampering world growth. Despite this, financial markets have largely shrugged off the negative consequences. The article cites data from the International Monetary Fund (IMF) and the World Bank, which have downgraded their global growth forecasts due to the uncertainty created by the trade disputes. The tariffs have forced companies to rethink their supply chains, leading to higher costs and reduced investment. However, the article notes that financial markets have remained largely unaffected, with major stock indexes continuing to reach new highs. This apparent disconnect between the real economy and financial markets is attributed to the belief that central banks will provide sufficient support to prop up the markets. The article concludes that the long-term consequences of the trade war could be more severe, as the disruption to global supply chains and the erosion of international cooperation could have lasting effects on the world economy.