US Tariff Hikes Set to Destabilize Global Economy — Zambian Economist Warns
Renowned Zambian economic analyst Kelvin Chisanga has raised alarm over the escalating global economic instability following the United States’ latest tariff hikes under President Donald Trump’s administration.
According to Mr. Chisanga, the global economy is currently experiencing rapid structural shifts, with U.S. trade policy playing a pivotal role in triggering shocks across financial markets.
“These policy announcements are coming with aggressive momentum and are delivering immediate consequences,” he said, noting that investor confidence and market performance are facing sharp declines.
The newly imposed U.S. tariffs are expected to disrupt global trade and investment patterns significantly. Mr. Chisanga warned that the policy move could further strain diplomatic ties and stoke geopolitical tensions.
“This shift is poised to cause serious diplomatic disorder and is likely to foster destabilization in many regions,” he stated.
The impact is already being felt in the commodities and bond markets. Oil and copper prices, in particular, have tumbled, with Brent crude plummeting by 6.5% to $65.58 — a multi-year low. Copper prices have also fallen below the $9,000 mark per ton, marking the steepest drop since March 2020.
African economies have borne the brunt of investor fears, as seen in the dramatic decline in sovereign bond prices. Angola’s 2049 Eurobond dropped over 6%, Nigeria’s 2038 bond fell by 5.41%, Zambia’s 2053 issue declined by 5.40%, and Senegal’s 2048 bond suffered a 6% plunge.
Mr. Chisanga emphasized that the global response to the U.S. move could lead to the formation of new regional trade alliances as countries seek to shield themselves from the fallout of a looming trade war.
“We are seeing reciprocal policy reactions from many regions, and this could spiral into a serious global trade war,” he concluded.
