The year 2025 is expected to bring many major economic challenges globally, according to a report published by the Deutsche Welle website by writer Timothy Rooks.
These challenges extend from American policies under President Donald Trump’s second term, through trade wars and immigration, to armed conflicts and technological developments in the field of artificial intelligence.
1. Donald Trump’s second term and its global impact
As he begins his second term next January, Donald Trump continues to implement his “America First” policy, reshaping the global order in ways that are difficult to predict.
The report says that this era will witness a clear absence of traditional American leadership, which may open the way for countries such as China, Russia, and India to enhance their military and economic influence.
According to the report, Trump is known for his skepticism about international alliances such as NATO, which weakens international coordination and increases uncertainty in global markets.
Moreover, his unpredictable decisions directly affect global prosperity, as he focuses on isolationist policies that may lead to radical shifts in global trade and economic alliances.
2. Trade wars and tariffs
Trump’s tariff policies are one of the most prominent concerns for companies and countries alike.
During his 2024 election campaign, Trump threatened to impose tariffs of up to 60% on Chinese goods and 25% on Mexican and Canadian goods.
This escalation portends the dismantling of trade agreements such as the United States-Mexico-Canada Agreement (USMCA).
The report explains that these policies will lead to higher prices in the United States and harm global supply chains.
However, Trump defends tariffs as a way to reduce the trade deficit, but in return this approach could cause a global trade war, increasing economic instability.
3. Tightening restrictions on immigration
Global migration is facing increasing difficulties as many countries – especially the United States and Europe – move to impose more stringent restrictions.
During his campaign, Trump promised to carry out the largest deportation operation in American history, while tightening procedures on the border with Mexico, which increases pressure on immigrants from Latin American countries such as Cuba, Haiti, and Venezuela.
These policies are not limited to the United States only, but the European Union also seeks to intensify its measures against illegal immigration.
The report indicates that these policies lead to disruption of the labor market, especially in sectors that depend on migrant labor, such as agriculture and services.
In addition, restrictions on legal immigration – such as reducing the number of visas and limiting refugees – will affect economic and social diversity in these countries.
4. Wars and conflicts and their economic impact
As wars and armed conflicts continue in Ukraine, the Middle East and Asia, they are expected to have a heavy cost on the global economy.
Trump claims that he can end the war in Ukraine within 24 hours by cutting off US funding, which could force Kiev to negotiate with Moscow.
In the Middle East, Israel continues its war on the Gaza Strip, which has spread to Lebanon, further destabilizing the region.
In Asia, China continues its threats against Taiwan, with fears of an imminent invasion.
The report indicates that the absence of American leadership may encourage Iran and North Korea to take military steps, further complicating the global scene.
5. Artificial intelligence and economic development
Despite the significant progress in the field of artificial intelligence since the launch of GBT Chat in 2022, the technology still faces challenges that prevent it from achieving its full impact.
Global companies are investing heavily in data centers and the infrastructure needed to support artificial intelligence technologies, but these efforts collide with high energy costs and the need for clear policies for using the technology.
The report asks whether 2025 will be the year in which artificial intelligence becomes an essential component of the global economy.
However, the biggest challenge remains ensuring that technology is used in a way that delivers tangible benefits to businesses and workers rather than remaining unfulfilled technology promises.
Timothy Rooks confirms in the report published on the Deutsche Welle website that the year 2025 will witness unprecedented challenges that require governments and companies to deal with caution and flexibility with a changing global reality.
These challenges clearly show that the global economy needs innovative policies and strategies to maintain stability and achieve development.
