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'In a month or so, Americans will feel what sanctions are like,' warns Shankar Sharma

'In a month or so, Americans will feel what sanctions are like,' warns Shankar Sharma

Trump’s aggressive tariffs and attempts to reshape global trade are rattling investors and global markets.

Business Today Desk
Business Today Desk
  • Updated Apr 27, 2025 11:16 AM IST
'In a month or so, Americans will feel what sanctions are like,' warns Shankar SharmaIMF has cut its global growth forecast to 2.8% for 2025, warning of deeper slowdowns if trade wars escalate.

As America's dollar slides and global tensions deepen, a new kind of shock may soon hit US citizens—economic pain from within.

Veteran investor Shankar Sharma warned on X, "In the next 1 month or so, Americans will start to experience what economic sanctions feel like." His statement found unlikely agreement from investor Samir Arora, who added, "For the first time in recorded history, I have to agree with Shankar. Also, they are analysing March end results and saying how good/ok they are when the real drama started in April."

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The context for these comments is a weakening US dollar, now on track for its worst first 100 days under a presidency since Richard Nixon's era. Since Donald Trump's return to the White House, the dollar index has fallen around 9%, the steepest decline for an early-term president since America abandoned the gold standard in 1973.

Trump’s aggressive tariffs and attempts to reshape global trade are rattling investors and global markets. A Bloomberg survey shows US economic growth forecasts for 2025 have been slashed to 1.4%, down from 2% earlier, while recession risks have risen sharply.

The damage isn't contained within US borders. South Korean exports to the US dropped 14.3% in April. China’s economy remains heavily reliant on fragile foreign demand, even as its domestic growth falters. Germany, facing stagnation, is forecast to barely grow this year.

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Meanwhile, the IMF has cut its global growth forecast to 2.8% for 2025, warning of deeper slowdowns if trade wars escalate.

As global supply chains fragment and inflation pressures rise in regions from Japan to Brazil, the world is recalibrating. Investors, businesses, and policymakers are all bracing for aftershocks from America's inward turn.

For the first time in decades, it seems the financial world is preparing for Americans to feel the sharp edge of policies they once unleashed elsewhere.

Published on: Apr 27, 2025 11:16 AM IST
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