This policy-driven slowdown is causing ripples across the global economy. Companies are delaying capital expenditure, hiring has slowed, and cargo volumes at major ports have plummeted. In many cases, firms have suspended earnings guidance entirely, reflecting the level of uncertainty.
Heightened geopolitical uncertainty, volatile trade policy and a softening macroeconomic backdrop are weighing on global growth halfway through 2025. In its latest midyear outlook, Capital Group warns that investors should brace for more turbulence, but also outlines long-term opportunities amid the dislocation.
“A lack of clarity over US trade policy — with rising tariffs at the centre of the storm — has delivered a severe shock to the global economy,” Capital Group notes. “For the first time since 2022, US gross domestic product (GDP) in the first quarter declined.”
