The United States’ Protectionist Trade Policies and Their Economic and Financial Implications for the Global Economy: An Analytical Study Covering the Period 2018–2025

Abstract

The study aimed to examine the economic and financial implications of US protectionist policies during the period 2018–2025, highlighting their impact on the United States, Europe and China, as well as on the global economy. To achieve this, a combination of descriptive and analytical approaches was employed, alongside inductive reasoning, with the aim of describing protectionist measures and analysing their implications for growth, inflation, international trade flows and the stability of supply chains. The findings indicate that the escalation of tariffs and trade wars has increased uncertainty, raised the cost of cross-border transactions, disrupted supply chains, and weakened the competitiveness of exports, particularly those from Europe. Conversely, these policies have prompted many countries to diversify their trading partners, seek alternative markets and reduce their dependence on the US, which has effectively contributed to reshaping the global trading system. Although protectionism has not led to a complete collapse in global trade, it has halted its growth momentum and added further tension to the global economic landscape. Ultimately, the study concludes that the gains achieved through these policies remain unstable and short-term, whilst the long-term structural damage affects the efficiency of trade and the stability of the international economy. This necessitates that the countries concerned strengthen cooperation mechanisms, diversify their alliances, and move towards formulating fairer and more sustainable trade rules.