‘This is a tragedy’: Mark Carney warns the 80-year period of US economic leadership ‘is over’ — says America is no longer the anchor of global trade. Here’s how to survive the ‘new reality’

As the former head of both the Bank of Canada and the Bank of England, and an Oxford-Harvard trained economist, Carney certainly has the experience needed to help Canada navigate this new reality. But his stern warning is rippling far beyond Canadian borders.

According to the BBC, world leaders, including EU Commission Chief Ursula von der Leyen and Japan’s Prime Minister Shigeru Ishiba, say the ongoing trade war will have “dire” consequences for millions of people across the world and undermine the global trading system.

Here’s why the chorus of concern continues to expand and how you can prepare for what’s to come.

The world’s largest buyer

The U.S. isn’t just the largest economy in the world, it’s also the largest consumer of goods and services.

In 2023 alone, the U.S. imported goods worth $3.17 trillion in aggregate, according to Visual Capitalist’s coverage of World Trade Organization data. China, the second-largest economy in the world, is a net exporter, according to the Financial Times.

As a result, the global economy heavily relies on American consumption, and any trade barriers, such as tariffs or embargoes, could have severe consequences for nearly every country.

This is why Carney is warning that the Trump tariff policy could “rupture the global economy.”

There are signals validating this thesis too. For example, global stock markets have shed $9.5 trillion in total value since early April, according to The Street. And though JPMorgan’s probability forecast for a U.S. recession this year dropped to 40%, it's still on the table.

However, this isn’t the first time the world has faced an economic calamity, and there are ways you can prepare your finances for a tough road ahead.

Safe havens

There’s no way to predict what the economy could look like a few months from now. But there are ways to protect your wealth and household budget right away.

Recessions usually coincide with a sharp surge in layoffs and unemployment, so building up a larger-than-usual emergency fund could bolster your family’s finances if you happen to lose income.