How the US’s ‘Big Beautiful Bill’ Could Unleash a 50-Year Inflation Surge Worldwide

The US government’s new ‘Big Beautiful Bill’ combines over $1 trillion in federal spending with a sharp increase in import tariffs on more than 500 categories of goods. Nigel Green, CEO of deVere Group, warns this legislation could cause the most inflationary economic impact seen globally in over half a century.

“This bill throws open the taps on spending while throttling the flow of global goods. It’s a high-stakes gamble with inflation—and one that the rest of the world will end up paying for,” Green says.

The tariffs will affect a broad range of products, including clean technology, electronics, and industrial components. For example, tariffs on Chinese goods could nearly double from 8% to 17.5%, driving up costs for manufacturers and consumers worldwide.

Implications for Australian Businesses and Economy

Australia’s economy is closely linked with both the US and China. Rising US tariffs and federal spending could import inflationary pressures to Australia just as the Reserve Bank faces critical decisions on interest rates.

“When the US imports inflation, other economies catch it too,” says Green. “Emerging markets suffer currency instability. Europe faces higher energy and input prices. And global investors demand higher premiums for government debt.”

Australian businesses may see input costs rise sharply, squeezing profit margins, while consumers face higher prices. The Reserve Bank may need to maintain or increase interest rates to keep inflation in check, potentially raising borrowing costs for businesses and households.

Political and Economic Risks

Green points out the political motivations behind the bill, especially in an election year. “When economic policy becomes an election weapon, there’s rarely any incentive to think about consequences. This isn’t about markets or macro stability, it’s about headline wins. And that’s when serious mistakes get made.”

While the bill aims to rebuild US manufacturing and reduce global supply chain dependence, Green warns the economic cost is often underestimated: “You can’t decouple from global trade without triggering price shocks. You can’t print and spend your way into competitiveness; and you can’t load the economy with stimulus and tariffs at the same time without blowing a hole in inflation expectations.”

What Should Australian Businesses Do?

Businesses should review their supply chains and cost structures to prepare for sustained inflationary pressure. Diversifying suppliers and improving operational efficiency will be critical to managing rising input prices.

Investors should also adjust portfolios to reflect a renewed inflation risk environment. “This isn’t business as usual. This is the return of long-term inflation risk—and the pricing of assets, currencies, and portfolios needs to adjust to that reality immediately,” Green cautions.

In summary, the ‘Big Beautiful Bill’ represents a major turning point in global economic policy. Australian businesses and the wider economy will need to navigate rising inflation, supply chain disruption, and policy uncertainty in the coming months.

The post How the US’s ‘Big Beautiful Bill’ Could Unleash a 50-Year Inflation Surge Worldwide appeared first on Small Business Connections.