U.S. President Donald Trump¡¯s ¡°Liberation Day¡± announcement of sweeping new tariffs on imports from more than 180 countries will be remembered as a man-made economic tsunami.

Many are already comparing it to President Herbert Hoover¡¯s 1930 Smoot-Hawley Tariff Act, which slashed global trade by 66% in five years and deepened the Great Depression. Trump¡¯s tariffs ¡ª most of which have been abruptly paused for 90 days ¡ª have rattled financial markets, prompting analysts to warn that the United States could enter a recession in 2025.

The global implications can hardly be underestimated. As the world¡¯s largest economy, the U.S. has an outsize impact on other countries¡¯ exports and growth. Adding to the uncertainty is Trump¡¯s erratic approach to policymaking, which is nurturing doubts about the U.S. dollar¡¯s viability as a global reserve currency.