Donald Trump’s Import Tariffs: A Double-Edged Sword for Inflation
As Donald Trump campaigns with promises of significant import tariffs, questions arise regarding their potential impact on inflation in the U.S. While overall inflation has significantly decreased, economists warn that Trump’s protectionist measures could reverse this trend, causing prices to rise again. Proposed tariffs could reach up to 60% on products from China and 10% on all imports, potentially leading to an inflation increase of 1.3 percentage points in the first year. With a tight labor market and strict immigration policies also at play, Trump’s economic agenda could result in a new wave of inflation as early as 2025.