Apr 6, 2025, 3:37 PM

By: Najah Mohammed Ali

Trump's policies btw. economic shocks and geopolitical risks

Trump's policies btw. economic shocks and geopolitical risks

TEHRAN, Apr. 06 (MNA) – US President Donald Trump's recent imposition of tariffs on different countries will come with implications in different aspects from economic shocks to geopolitical risks.

1. Tariff Shock: Decisions and Widespread Consequences
 • Executive Details:
 • Implementation method: Tariffs were imposed suddenly without prior notice, with limited compensatory measures for affected US companies
 • Most affected sectors: Electronics (losses of $32 billion), cars ($21 billion), consumer goods ($18 billion)
 • International reactions: China and the EU filed an official complaint to the World Trade Organization (WTO)
 • Deeper Analysis of Effects:
 • Banking sector impacts: Losses of $42 billion from 7 major U.S. banks in one week
 • Global shipping movement: 15% drop in container traffic across the Pacific
 • Supply chains: Disruptions in 78% of multinational supply chains
2. Enhanced Strategic Dilemma
 • Additional Data on Reshoring:
 • 68% of US companies plan to keep operations in Asia despite pressures
 • Only 12% of companies have started partial relocation of operations to the US
 • Estimated relocation costs: $280-320 billion for the private sector
 • Expanded Energy Crisis:
 • 17% of shale oil wells closed due to economic unfeasibility
 • Losses in the US energy sector: $34 billion in Q1 2025
 • Employment effects: Loss of 78,000 direct jobs in the energy sector
3. In-depth Iranian File
 • Expanded Military Analysis:
 • US military presence: Increased troops to 45,000 in the Persian Gulf
 • Iranian capabilities: Deployment of 1,200 ballistic missiles on the coasts
 • Scenarios of Hormuz closure: US simulations predict losses of $18 billion daily
 • Scenarios of Bab al-Mandeb closure: Threat to energy supplies, as Bab al-Mandeb is a key route for oil from the region to Europe and the US Any disruption could affect global oil prices.
 • New Regional Alliances:
 • Iran- Russia mutual defense agreement (February 2025)
 • China-Iran naval exercises with Russian participation, titled "Maritime Security Belt 2025," held in the southeastern Iranian port of Chabahar overlooking the Gulf of Oman (March 2025)
 • Increased trade exchange between Iraq and Iran by 37%
4. Detailed Yemeni Disaster
 • Indicators of Military Failure:
 • Yemeni Armed Forces' control: From 80% to 85% during 2025
 • Coalition losses: 143 drones shot down since January 2025
 • Human cost: 3,200 additional Saudi casualties
 • Yemen's success in breaking U.S. dominance in the Red Sea, viewed by many observers as an unprecedented strategic development and a challenge to the traditional control exerted by the U.S. Navy for decades
 • The Yemeni Armed Forces succeeded in imposing a maritime blockade on Israeli shipping through the Red Sea since November 2023, establishing a strong front for Palestinian resistance in response to Israeli occupation’s aggression and blockade on Gaza
 • Economic Repercussions:
 • Saudi operations cost during the war: $3.2 billion per month
 • Saudi oil sector losses: 18% drop in production
 • Impact on Aramco: 22% drop in market value
 • These losses could double if US aggression against Yemen continues and Trump executes the folly of attacking Iran
5. Expanded Domestic Dilemma
 • Political Division:
 • 42% of Republican Party members publicly oppose Trump's policies
 • Five legislative proposals to limit the president's trade powers
 • Domestic Economic Conditions:
 • Annual inflation rate: 8.7% (highest since 1982)
 • National debt: Exceeded $36 trillion
 • Credit rating: Moody’s downgrade of U.S. rating to Aa2
6. Enhanced Geopolitical Shift
 • New Alliances:
 • China-EU trade agreement (covers 43% of the global economy)
 • Russia-Iran-India energy alliance (covers 28% of global energy needs)
 • Alternative payment system (19 countries adopting a system outside SWIFT)
Enhanced Recommendations for Concerned Countries For Iran and Iraq:

• Investment in Local Technologies: Develop alternative industries by 40% over 3 years
 • Economic Integration: Increase trade exchange to $25 billion annually
 • Security Cooperation: Establish a joint deterrent force of 150,000 soldiers
 • Zero reliance on oil and its derivatives for the budget
 • For Iraq, also freeing oil imports from U.S. hegemony (US Federal Reserve)
For Regional Parties:
 • Alternative Monetary Fund: Establish a regional financial system with a capital of $50 billion
 • Joint Exercises: Conduct 12 joint military exercises annually
 • Joint Infrastructure: Complete 5 major energy and transportation projects
Enhanced Trusted Sources:
 • IMF Reports (April 2025)
 • RAND Corporation Studies
 • Leaked U.S. National Security Council Documents
 • Official U.S. Treasury Department Data
Strategic Analysis: The data indicates that Trump’s policies are leading America into a "perfect storm" that combines:
 1. Expected economic recession (-1.5% growth in 2026)
 2. Unprecedented geopolitical isolation
 3. Domestic social crises
 4. Erosion of soft military power
In contrast, rival powers are witnessing:
 • 5.3% growth in China’s economy
 • Increased Russian influence in 14 new countries
 • 4.8% recovery in Iran’s economy
 • Rise of alternative currencies (Yuan 28% of global reserves).

MNA

News ID 230232

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