Trump Tariffs: Economists Warn of Recession and Stagflation Risks
Economists are sounding the alarm over the potential economic fallout from former President Donald Trump's proposed tariffs. A recent analysis by The New York Times provides a detailed 'cheat sheet' on the tariffs, highlighting their broad scope and potential impact on various sectors of the economy. CNN reports that these tariffs could push the U.S. into a recession, with international trade relations likely to suffer as a result.
CBS News has gathered insights from economists who predict that the tariffs could lead to stagflation, a combination of stagnant economic growth and high inflation. This scenario is particularly concerning as it could exacerbate existing economic challenges. The Hill cites a JP Morgan analysis suggesting that the proposed tariffs could significantly increase the risk of a recession, with ripple effects felt across global markets.
The proposed tariffs, if implemented, would mark a significant shift in U.S. trade policy, potentially leading to retaliatory measures from other countries. As the debate over these tariffs continues, the economic community remains divided on the best path forward to ensure stability and growth.
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Can tariffs be beneficial?
America First Policy Institute: “Tariffs worked then—and they'll work again. Under President Trump, tariffs brought back jobs, lowered inflation, and strengthened national security. It's not just economic policy—it's America First in action.”
How is the US economy?
Economic growth The economy recorded average annual growth of 2.5% in the decade to 2024. However, growth was disrupted by the COVID-19 pandemic in 2020, leading to a sharp but brief recession. The subsequent recovery in 2021-2023 was rapid, fueled by strong growth in consumption and exports.
Why is the US imposing tariffs?
Sec. 2. Reciprocal Tariff Policy. It is the policy of the United States to rebalance global trade flows by imposing an additional ad valorem duty on all imports from all trading partners except as otherwise provided herein.
What is a tariff war?
A trade war is an economic conflict often resulting from extreme protectionism, in which states raise or implement tariffs or other trade barriers against each other as part of their commercial policies, in response to similar measures imposed by the opposing party.
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