The first year of President Trump’s second term has been marked by a series of policy shocks signalling an era of heightened uncertainty for the global economy. Euromonitor International identified six pillars of Trump’s policies during his first year, three of which have dominated: Tariffs, Migration and (De)Regulation. Industries have faced higher costs, supply chain disruptions, trade uncertainty and changing consumer demands.
Our experts review the past year and outline the most significant implications of tariff shocks across economies, consumers and industries. The threat of new tariffs amid uncertainty surrounding the future of Greenland is further heightening trade tensions in early 2026. Businesses that combine agility with long-term resilience planning are best positioned to succeed in this unpredictable operating environment.
Tariffs: The most consequential policy shift
From shock to strategy: Building resilience
Trump’s second year is set to bring continued uncertainty and unpredictable geopolitical developments, as evidenced by the US intervention in Venezuela in early January 2026. Global economic growth is expected to stagnate as higher effective tariff rates weigh on investment and trade.
Business must balance short-term shocks alongside long-term resilience through strategies such as regionalised supply chains, retail channel diversification, adapting product portfolios to changing consumer demands and enhanced scenario planning.
For more insights about market uncertainties and geopolitical risks, explore our trending topic, Market Volatility.
Note: At the time of writing, the US Supreme Court has deferred a pending decision on the legality of Trump’s tariffs.
