Economic Policies Implemented by President Donald Trump, Particularly on Tariffs and Trade, Are Considered to Have Caused Deeper Economic Instability Than the Impact of the COVID-19 Pandemic on the Global Economy

High Level of Economic Uncertainty

Empirical measurements indicate that economic policy uncertainty during Trump's administration reached levels comparable to those seen during the COVID-19 crisis. This situation created a volatile and confusing policy environment, making it difficult for businesses to formulate long-term investment decisions. (Time)

Impact of Tariffs on Industry and Economic Growth

Trump's tariff policies have placed significant pressure on industrial sectors, particularly energy. U.S. crude oil prices have dropped nearly 15% since early April 2025, hitting their lowest point since April 2021. On the other hand, import tariffs—such as the 25% duty on steel—have driven up production costs, slowed infrastructure development, and significantly hindered the growth of domestic oil production. 

Warnings from Global Financial Leaders

According to a report by thetimes.co.uk, Goldman Sachs CEO David Solomon issued a warning that the escalating trade war under the Trump administration poses a "material risk" to both U.S. and global economic stability. Goldman Sachs even downgraded its U.S. economic growth forecast for the year to 0.5% and expressed concern over the growing potential for a recession.

Criticism from Economists and Investors

Several prominent economists and investors, including Bridgewater Associates founder Ray Dalio, have voiced concerns that President Trump’s tariff policies could worsen the economic crisis if not handled prudently. Dalio stated that the global economy is currently in a critical phase, highly vulnerable to recession, and that the risk of a deeper crisis will increase unless the direction of policy is swiftly corrected. 

Comprehensive Analysis

Trump's economic policies have generated widespread macroeconomic uncertainty, slowed industrial growth, and elevated the risk of a recession. This uncertainty has triggered sharp financial market fluctuations, reduced investor confidence, and hindered global economic growth. Compared to the direct impact of the pandemic, the instability caused by these policies is seen as more prolonged and profound.

Conclusion

President Donald Trump's tariff and trade policies have emerged as a major source of global economic instability. The resulting uncertainty has not only impeded economic growth but also amplified recession risks and exerted greater pressure than the COVID-19 pandemic era.