Inflation and sovereign debt: Challenges facing the global economy under "trade protectionism" policies

Inflation and sovereign debt: Challenges facing the global economy under "trade protectionism" policies

The 2026 World Economic Forum in Davos, Switzerland, witnessed an exceptional appearance by US President Donald Trump, who used the platform to announce what he called a "new golden age for the American economy." In a speech lasting over an hour, Trump emphasized that his policies of tax cuts and deregulation were the main reason for the resilience of the US economy in the face of global shocks. However, this speech did not go unnoticed by the leaders of participating countries and international organizations, who see the return of protectionist policies as a threat to the stability of global supply chains. US Growth vs. Public Debt: Despite the positive figures Trump presented regarding declining unemployment rates, economists behind the scenes at Davos warned of the "ticking time bomb" of US sovereign debt, which has reached historic levels. Relying on borrowing to finance tax cuts could, in the long run, weaken the dollar and raise borrowing costs globally. This…