Near-Term Shocks Amid US Policy Moves; Protracted Trade Wars Will Shave Off 1.5% of Global GDP Growth in 2028
27-Feb-2025
North America
PFSV-01-00-00-00
CI_2025_1320
Global trade and economic growth momentum will be a complex function of political, trade, and policy moves made under the second Trump administration in the United States. This Frost & Sullivan macroeconomic thought leadership lays down potential US policy scenarios (including tariffs, immigration, and foreign policy) to establish forecasts for 2025 and 2028 for the global economy and the economies of the United States, China, Mexico, and the euro area.
In the baseline, Frost & Sullivan expects the impact on global GDP to remain muted between 2025 and 2028 mainly due to buoyant growth in key Asian emerging markets. In the pessimistic scenario, protracted trade wars could shave off 1.5% from global GDP growth in 2028. At the national level, in 2028, the United States' real GDP growth could slow to 2.0% in the baseline scenario and a meager 0.5% in the pessimistic scenario.
US trade and immigration regulations might exacerbate recessionary conditions in the Canadian and Mexican economies in 2025. For instance, the Mexican economy is forecast to face a 0.4% contraction in 2025 in the baseline and a 0.5% contraction in the pessimistic case.
The analysis includes long-term implications of the second Trump administration on the global economy and on the automotive, semiconductor, and oil and gas industries. Decision-makers and executives can leverage this thought leadership to make informed business and expansion decisions in the near to medium term in an era of elevated geopolitical tensions and persistent trade wars.
Scope of Analysis
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives of Global Macroeconomic Risks and Opportunities Emerging from Trump 2.0, 2025–2028
Global Macroeconomic Risks and Opportunities Emerging from Trump 2.0, 2025–2028: Drivers and Restraints
Economic Metrics
Abbreviations
Executive Orders—Immigration-Focused
Executive Orders—Energy and Climate-Focused
Executive Orders—Corporate Tax-Focused Measures
Trump 2.0—Potential Policy Vision Scenarios
Trump 2.0 Policy Likelihood and Risk Impact Mapping
Key Macroeconomic Impact—Global
Key Macroeconomic Impact—United States
Key Macroeconomic Impact—China
Key Macroeconomic Impact—Mexico
Key Macroeconomic Impact—Euro Area
Trump 2.0 Long-Term Implications
Automotive
Oil and Gas
Semiconductors
Growth Opportunity 1: Automotive
Growth Opportunity 1: Automotive (continued)
Growth Opportunity 2: Energy (Oil and Gas, Green Energy, and Nuclear Energy)
Growth Opportunity 2: Energy (Oil and Gas, Green Energy, and Nuclear Energy) (continued)
Growth Opportunity 3: High-Tech Industries (AI and Semiconductors)
Growth Opportunity 3: High-Tech Industries (AI and Semiconductors) (continued)
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
- Economic Metrics, Global, 2024, 2025E, 2028F
- Trump 2.0 Potential Policy Visioning Scenarios, Global, 2025–2028
- Trump 2.0 Policy Likelihood and Risk Impact Mapping, 2025–2028
- Real GDP Growth by Scenario, Global, 2024, 2025E, 2028F
- Inflation Rate by Scenario, Global, 2024, 2025E, 2028F
- Real GDP Growth by Scenario, United States, 2024, 2025E, 2028F
- Inflation Rate by Scenario, United States, 2024, 2025E, 2028F
- Real GDP Growth by Scenario, China, 2024, 2025E, 2028F
- Inflation Rate by Scenario, China, 2024, 2025E, 2028F
- Real GDP Growth by Scenario, Mexico, 2024, 2025E, 2028F
- Inflation Rate by Scenario, Mexico, 2024, 2025E, 2028F
- Real GDP Growth by Scenario, Euro Area, 2024, 2025E, 2028F
- Inflation Rate by Scenario, Euro Area, 2024, 2025E, 2028F
- Trump 2.0 Top 5 Potential Transformations, Global, 2025–2028
- Trump 2.0 Automotive Industry Impact Analysis, US and Global, 2025–2026
- Trump 2.0 Oil and Gas Industry Impact Analysis, US and Global, 2025–2026
- Trump 2.0 Semiconductor Industry Impact Analysis, US and Global, 2025–2026
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| Author | Nikita Talnikar |
|---|---|
| Industries | Cross Industries |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Trump 2.0 economic impact |
| Keyword 2 | Economic forecast under Trump |
| Keyword 3 | Global trade policy shifts |
| List of Charts and Figures | Economic Metrics, Global, 2024, 2025E, 2028F~ Trump 2.0 Potential Policy Visioning Scenarios, Global, 2025–2028~ Trump 2.0 Policy Likelihood and Risk Impact Mapping, 2025–2028~ Real GDP Growth by Scenario, Global, 2024, 2025E, 2028F~ Inflation Rate by Scenario, Global, 2024, 2025E, 2028F~ Real GDP Growth by Scenario, United States, 2024, 2025E, 2028F~ Inflation Rate by Scenario, United States, 2024, 2025E, 2028F~ Real GDP Growth by Scenario, China, 2024, 2025E, 2028F~ Inflation Rate by Scenario, China, 2024, 2025E, 2028F~ Real GDP Growth by Scenario, Mexico, 2024, 2025E, 2028F~ Inflation Rate by Scenario, Mexico, 2024, 2025E, 2028F~ Real GDP Growth by Scenario, Euro Area, 2024, 2025E, 2028F~ Inflation Rate by Scenario, Euro Area, 2024, 2025E, 2028F~ Trump 2.0 Top 5 Potential Transformations, Global, 2025–2028~ Trump 2.0 Automotive Industry Impact Analysis, US and Global, 2025–2026~ Trump 2.0 Oil and Gas Industry Impact Analysis, US and Global, 2025–2026~ Trump 2.0 Semiconductor Industry Impact Analysis, US and Global, 2025–2026~ |
| Podcast | No |
| WIP Number | PFSV-01-00-00-00 |
Global Macroeconomic Risks and Opportunities Emerging from Trump 2.0, 2025-2028
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