The world has become increasingly aware of the economic repercussions caused by tariffs, which have unsettled global economies.

The current discussions surrounding tariffs have significantly influenced economic performance and prospects, dampening business confidence and increasing market volatility. This prevailing uncertainty has made it challenging for policymakers to develop effective fiscal and monetary strategies. One of the greatest miscalculations for those shaping policy is underestimating the rising costs, which could soar to unpredictable levels.

For instance, countries without a trade surplus or burdened by debt could face intense pressure from higher borrowing costs, as they rely on incoming capital.

However, by the latter part of last week, global market conditions appeared to stabilise somewhat.

The more stable tariff environment could suggest that there are possibly discussions taking place behind the scenes between the US and China, the leading global trading partners, along with others.

Despite mixed messages, some media reports suggest that negotiations between the two nations (US and China) are already underway, although this remains unconfirmed.

In light of these........

© Business Recorder