Goerg highlighted that the unpredictability of these tariff policies creates a challenging environment for businesses, discouraging long-term investments and strategic planning.

He warned that while the full impact of these tariffs remains uncertain, they are likely to drive up inflation and reduce U.S. competitiveness.

Signs of an economic slowdown in the U.S. are already evident, with rising prices and falling stock prices contributing to a sense of instability.

Goerg expressed skepticism about the effectiveness of current U.S. tariff policies in revitalizing domestic industries or reshoring production.

He urged major economies, particularly the EU and China, to take proactive measures to stabilize global trade during this critical juncture.

Goerg cautioned that escalating tensions between the U.S. and its trading partners could lead to a detrimental trade war affecting all parties involved.

He warned that if the international trade system collapses, it would have catastrophic consequences for global markets.

The U.S. has implemented a 25 percent tariff on imported steel and aluminum, which has prompted the European Union to introduce countermeasures.

In response to these countermeasures, President Donald Trump has threatened to impose additional tariffs on EU imports.

Holger Goerg, a German economist and professor at the University of Kiel, expressed concerns during a recent interview about the implications of U.S. tariff policies on the global economy.

He noted that while the U.S. has historically benefited from globalization, it is now retreating from established international trade norms.

Ultimately, Goerg believes that U.S. tariff policies will adversely affect the U.S. economy the most, heightening uncertainty for the global economy.