Croatian economist Petar Vuskovic has warned that U.S. President Donald Trump’s recent tariffs could trigger inflation and a global recession. In an interview with N1 Television on Tuesday, Vuskovic stated that the economic ‘Armageddon’ has already begun, evidenced by collapsing stock markets and fearful investors.
On Monday, European stocks fell for the fourth consecutive session, while the S&P 500 continued its decline for a third day, both fueled by concerns over U.S. tariffs. “Companies are already laying off workers, and the situation is practically worse than during the COVID-19 pandemic,” Vuskovic said. “All stakeholders are at risk—from state budget revenues to investors, company owners, and employees. Simply put, the economic situation is bad.”
Regarding Croatia, Vuskovic noted that Croatian exports to the United States amount to 587 million euros ($642 million) annually, less than 10 percent of Europe’s total exports to the U.S. market. However, he warned that tariffs will lead to price increases for imported goods such as computer components. “Production costs will increase due to the growth of raw material imports, and exports will become more expensive,” he explained. “The biggest losers will be companies that export wines, oils, medicines, sardines, pharmaceutical products, machinery, and wood products.”
He added that tariffs could also result in a drop in budget revenues for the Croatian economy, especially if exporters are severely affected.
Despite widespread opposition, Trump signed an executive order last week imposing a 10-percent “minimum baseline tariff” on all imports, with higher rates on certain trading partners. “I do not think that this protectionist economic policy is good,” Vuskovic concluded. “Trump will protect the richest with tariffs and make his citizens poorer.”
