Croatian economic analyst Petar Vuskovic has likened U.S. President Donald Trump’s latest tariff measures to “matches that will ignite” inflationary pressures and recessionary risks, as global markets reel from escalating trade tensions. In an interview with N1 Television, Vuskovic warned that recent stock market declines signal a new “period of recession,” with investor confidence plummeting amid uncertainty.
European stocks and the S&P 500 have recorded consecutive losses this week, reflecting market anxieties over Trump’s recent executive order imposing a 10% baseline tariff on all imports. Vuskovic highlighted that companies are already reducing workforces, calling the current situation “practically worse” than the COVID-19 pandemic’s economic fallout.
Croatia’s annual exports to the U.S. total 587 million euros ($642 million), representing less than 10% of Europe’s exports to the American market. Yet Vuskovic emphasized ripple effects for Croatian households and businesses, including higher prices for imported electronics and increased production costs. “The biggest losers will be exporters of wine, pharmaceuticals, and machinery,” he said, warning of reduced state revenues if tariffs persist.
Trump’s “reciprocal tariffs” have drawn international criticism, with analysts arguing such protectionist policies risk destabilizing global supply chains. “Trump will protect the richest with tariffs but make his citizens poorer,” Vuskovic cautioned. For Asian economies deeply integrated into global trade networks, the developments underscore vulnerabilities to shifting U.S. trade policies and their potential to reshape regional supply dynamics.
