From Washington to Asia, Economic Alarms Sound After Tariff Push

Weeks after U.S. President Donald Trump triggered a broad trade offensive, signs of global strain are emerging.
From Washington to Wellington, policymakers, traders, and economists are preparing for a week of data and meetings that could offer the clearest view yet of the fallout.
The IMF is set to revise its global outlook, with expected downgrades to growth and upward nudges on inflation. Director Kristalina Georgieva warned of the growing risk posed by lingering uncertainty. On the ground, a slew of purchasing manager indexes from major economies will start revealing how business activity has responded to Trump’s tariff wave.
At the same time, central banks—including the Fed, ECB, and others across Asia and Latin America—are weighing their next moves. The Fed’s Beige Book, along with inflation, housing, and consumer sentiment data, will paint a picture of how U.S. regions are navigating the new economic terrain. Meanwhile, Fed Chair Jerome Powell says the central bank remains cautious, waiting for more clarity before adjusting policy.
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In Asia, attention turns to PMI updates, inflation figures, and trade balances, especially in China, Japan, South Korea, and Indonesia. Officials across the region are closely monitoring currency pressure and preparing for policy responses if volatility escalates. South Korea’s trade delegation is already headed to Washington, hoping to reduce tariff burdens before the damage deepens.
Europe faces its own tests this week, with key confidence indexes, ECB reports, and wage data under the spotlight. Leaders will assess whether the economic slowdown is temporary or becoming entrenched as higher costs and weaker exports begin to bite.
Across Latin America, Argentina, Brazil, and Mexico release a mix of inflation and growth metrics. Argentina’s recovery hopes hinge on IMF support, while Mexico teeters near technical recession. Colombia and Paraguay may face monetary policy shifts if inflation accelerates further.
As finance ministers and central bankers converge in Washington for critical meetings, the focus will be on whether this is a short-term disruption—or the start of a long-term shake-up to global trade as we know it.