AI considered threat to humanity

(MENAFN)
The world economy, already burdened by instability and unpredictability, was thrown into deeper turmoil by U.S. President Donald J. Trump’s sweeping "Liberation Day" tariffs. These abrupt trade measures triggered widespread disruption, escalating market chaos and raising fears of a global economic meltdown.

Volatility Surges

Global financial markets reacted sharply. Stock exchanges lost $2.1 trillion in value within days, and currency markets swung wildly as traders tried to gauge the damage. Already fragile supply chains, still healing from the pandemic, were thrown into further disarray. Vietnamese factories rerouted shipments, German car manufacturers reassessed costs, and Chinese exporters prepared for punitive tariffs of up to 145%. The trade barriers acted like a wrecking ball to the delicate structure of international commerce, intensifying instability far beyond their immediate targets.

Rising Uncertainty

Amid this chaos, deeper uncertainty took hold. Previously reliable trade norms became unpredictable. Policies shifted without warning—tariff exemptions were granted and then withdrawn, leaving businesses unsure of the ground beneath them. Investment decisions were delayed, and the U.S. Federal Reserve was caught in a dilemma: raise interest rates to combat inflation and risk a downturn, or stay put and damage market confidence. U.S. allies struck back with targeted tariffs on politically significant exports like bourbon and motorcycles, putting millions of American jobs at risk and spreading economic insecurity across borders.

Complexity Overload

The trade conflict fractured long-standing international cooperation, pushing countries toward fragmented, short-term alliances. China moved quickly to bolster ties with the EU, ASEAN, and even historic rivals like Japan and India. The U.S., meanwhile, grew increasingly isolated. Corporations, trying to adapt, began designing parallel supply chains to accommodate both tariffed and non-tariffed markets, inflating costs and reducing efficiency. Tariff regulations grew convoluted, with the same product potentially taxed differently based on origin or composition, burdening the global trade system with unsustainable complexity.

In short, the convergence of trade wars, protectionist policy, and technological rivalry has created a dangerously unstable economic environment with no clear end in sight.

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