“The US President has thrown a hand grenade at the US economy and the global economy as a whole,” Stiglitz told the “Handelsblatt” according to the advance report on Saturday. Trump is destroying “international law as well as American law.”

The customs policy of the Presidents described Stiglitz as “self-harming”. Political uncertainty is deterring companies from investing, while consumers are becoming increasingly uncertain.

“It’s not just a catastrophe for the US economy”

Also the war in Iran exacerbate the risks. The development is “a catastrophe not only for the US economy, but for the entire global economy,” said Stiglitz, referring to rising energy prices and growing geopolitical tensions. There was uncertainty in the first 14 months Trumps The economist continued that his second term “took on a completely new dimension”. The first economic consequences of this policy are already visible – including in the USA itself.

Stiglitz described the situation on the labor market as an important warning signal. In 2025 there was “virtually no job growth” in the USA. Additionally, the latest data showed that “a significant number of jobs were lost” in February. This continues the trend of a stagnating economy.

Stiglitz attributed the comparatively strong growth in recent years primarily to investments in artificial intelligence. However, this may be a “dangerous bubble” that no one can say when it will burst. If this happens, the US economy is at risk of stagflation.