Ripple Effect: Trump Tariffs and the World’s Economic Quake
Publications
15 Apr 2025

Ripple Effect: Trump Tariffs and the World’s Economic Quake

In April 2025, the Trump administration stunned global markets by announcing a sweeping tariff expansion under the International Emergency Economic Powers Act (IEEPA), introducing a flat 10% universal tariff on all imports. This move, framed as a national economic emergency response, immediately triggered global trade uncertainty and diplomatic friction. The policy marked a significant escalation of Trump’s protectionist agenda, signalling a break with multilateralism and targeting long-standing trade imbalances with strategic rivals and allies alike. We found that the United States (U.S.) trade structure is deeply imbalanced, with persistent deficits concentrated in sectors essential to industrial production, such as machinery, electronics, and vehicles. These deficits have exposed the U.S. to retaliatory measures from key trade partners—particularly China, Canada, and the EU—who have calibrated their responses to hit politically and economically sensitive export categories. Tariffs have initiated a multi-channel inflationary shock: direct consumer price increases, rising intermediate input costs, and cascading pressures on logistics and wages. The compounded effect has resulted in a net consumer price index (CPI) increase of approximately 1.2%, with higher spikes in key durable goods. Global supply chains are beginning to reconfigure.   The automotive sector, in particular, has seen disruption in bilateral flows with traditional partners, creating openings for new logistical nodes. The UAE stands out as a beneficiary, attracting redirected FDI and becoming a strategic re-export and final assembly hub. Collectively, these findings underscore a paradox: while the policy aims to reduce dependency and correct trade imbalances, it simultaneously accelerates external retaliation, domestic cost pressures, and global fragmentation in trade infrastructure.
What Is Beyond the USAID Controversy?
Programmes
11 Feb 2025

What Is Beyond the USAID Controversy?

Recent decisions by U.S. President Donald Trump cutting aid to foreign countries and dismantling the U.S. Agency for International Development (USAID) have sparked global backlash. While the impact of cutting aid is substantial, the broader significance of this move cannot be overlooked. It reflects a deeper shift in the Trump administration’s foreign policy strategy. But what are the implications for the U.S. and its adversaries?
The West Polarised: Impact of the War in Gaza
Programmes
30 Nov 2023

The West Polarised: Impact of the War in Gaza

Ramifications of the Israeli-Hamas War have not been confined within Gaza or the Middle East’s borders. Polarisation over the Palestinian cause has reached a new character especially in the Western world where such a trend has never been as deep. Cracks within governments and societies can be traced to a volatility of values, exposure to social media, and demographic changes. With such an unprecedented divide over Western governments tolerating Israeli impunity in Gaza, the West is faced with a moral dilemma which might cost it it’s claimed “moral superiority”.