Cross-border Tax Talks The Great Economic Reordering: What’s Next for Global Markets?
Mar 20, 2025
Dr. Alexis Crow, Partner and Chief Economist at PwC US and former London School of Economics instructor, joins Doug McHoney for an insightful discussion. They analyze the impact of recent tariffs on global trade and the strains on U.S. consumers and businesses amid rising inflation. The conversation explores China’s economic resilience and India's manufacturing growth, alongside shifts in Europe and Latin America. They emphasize how multinationals should prepare for changes in tax policy and the broader economic landscape.
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Tariffs Hit A Weaker Economic Cycle
- Trump 2.0 arrives into a very different macro cycle with overstretched households and higher interest rates.
- That raises downside risks to growth and compresses policymakers' room to respond.
Inflation's Uneven Pain
- Inflation remains politically sensitive because prices still rise even as headline inflation falls.
- Housing and essential goods increases disproportionately strain lower-income households and consumption.
Dollar Dominance Is Resilient, Not Invincible
- The dollar's reserve status lets the U.S. keep borrowing despite large deficits, but that may face slow shifts.
- Some central banks are modestly diversifying into European sovereign bonds rather than dramatically abandoning the dollar.