President Donald Trump’s new tariffs, set to take effect this week, could significantly impact the global economy, potentially causing a $700 billion reduction in GDP by 2027 according to projections from the Japan External Trade Organization (JETRO). The tariffs, aimed at retaliating against perceived unfair trade practices, are expected to disproportionately impact US businesses through increased import costs. 25% tariffs on automobiles and auto parts are set to be implemented Thursday, adding to existing levies on goods sourced from China, Canada, and Mexico. While the White House frames this as a necessary correction for alleged past exploitation, economists warn about significant domestic consequences. 0.6% decline in global GDP is projected if these tariffs fully take effect by 2027, according to JETRO analysis, translating to a $763 billion loss based on IMF estimates. The US economy would bear the brunt of this impact, with a projected 2.7% decline, leading to higher prices for consumers and businesses reliant on Chinese goods.