'We're Screwed Either Way': Economic Expert Unpacks Consequences Of Trump's Global Tariffs

US president Donald Trump's global tariffs have stunned the international markets.Donald Trump’s global tariffs have “screwed” the international markets, according to the head of an economic think tank.The US president unveiled sweeping levies on all foreign goods going into the States last week, on top of a global 25% tax on cars and steel products.While the UK received one of the lower tariffs, with just a 10% tax on all exports to the States, the stock market is still reeling.The FTSE index of the top 100 companies in the UK plummeted to a one-year low in value when the stock markets opened on Monday.On Times Radio, the chief economist at the Institute for Fiscal Studies (IFS) Paul Johnson was asked if any potential trade deals with the US and reduced tariffs could settle the markets – or if they are now too spooked by his unpredictability they are unlikely to calm down.He said: “I rather fear we’re screwed either way.“We are in an unprecedented position in that one person with extraordinary power and as far as one can tell a wholly irrational attitude to economic policy is doing a series of unpredictable things.”But, Johnson admitted that the impact could be mitigated if the tariffs do look like a prelude to a set of deals.However, the president has already suggested he does not want to back down with his tariffs, saying: “Sometimes you have to take medicine to fix something.”The chief economist also warned that a recession could be on the way.He said: “Usually when stock markets fall like this [...] that is usually caused by or presages a recession.”It makes many people “a lot worse off”, he said, meaning consumers spend less, and it’s an indication that company profits have fallen – which could lead to lay-offs and redundancies.“Unless something happens, we’re certainly in for a period of much lower growth than we were expecting and quite possibly a recession, as a result of the actions of one man,” he continued.“One of the worrying things here is that it is not obvious what there is in the US Constitution which can hold him back him or stop him, or move him in a different direction.”Responding to fears – as expressed by Treasury minister Darren Jones – that the era of globalisation era is now over, Johnson said it was too soon to say for sure.He explained Trump’s tariffs are having such a huge impact “because globalisation is so important”.“Companies are dependent on supply chains that stretch all over the world,” he said.IFS chief added that if the tariffs stay in place, then countries will move towards being more individually self-sufficient – meaning the price of goods will go up.He added: “That is a very very bad thing, because that is another way of saying things will be produced in places that are much more expensive, much less efficient to produce them in.“It’s too early to say it’s the end of globalisation, but I think the impact of the tariffs is an indication to the extent by which globalisation has created the wealth which we all depend on at the moment.”“I think we’re screwed either way.”It’s “worrying” that there is no obvious mechanism within the US Constitution that can hold President Trump back from further affecting the markets, says @PJtheEconomist.@EdVaizey | @RSylvesterTimespic.twitter.com/MAF7zbxhdy— Times Radio (@TimesRadio) April 7, 2025Related...Trump Loses It Over Reporter's Straightforward Tariffs Question: 'So Stupid'Starmer Announces 'Bold Changes' To Support British Car Industry Amid Trump TariffsTrevor Phillips Mocks Labour For 'Bowing' To Trump And Still Being Hit With 10% Tariffs