Trump's Tariffs Not Crashing Global Growth: Gita Gopinath at Davos 2026

• Gita Gopinath states that despite aggressive trade rhetoric, global growth remains resilient due to technology-led investment and expansionary fiscal policy.
• The actual economic impact of tariffs is muted; effective US tariff rates are closer to 14% compared to statutory rates of 24-25%.
• Tariffs have added 0.5-0.7% to US inflation and acted as a modest drag on growth, but this has been offset by other factors.
• The AI boom, robust equity markets, and wealth effects on consumption have provided strong tailwinds, benefiting economies.
• Expansionary fiscal policies in the US, China, and Germany are further supporting demand, neutralizing the drag from tariffs.

Why It Matters: Global growth is resilient against Trump's tariffs due to AI, strong markets, and expansionary fiscal policies.