President Donald Trump’s sweeping tariff policies have sparked concerns among economists, business leaders, and policymakers. While some view them as a necessary tool to address trade imbalances, others fear they could disrupt supply chains. They also see it as a way to increase inflation and create market uncertainty. Experts EJ Dionne Jr. and Linda Yueh (London Business School) weighed in on the potential economic and political fallout.
Tariffs are effectively taxes on businesses and consumers, increasing production costs and leading to price hikes. Businesses face uncertainty, making them hesitant to invest or expand due to unpredictable trade policies. If tariffs disrupt supply chains and drive sustained price increases, inflation could remain elevated longer than expected.
Companies that relocated manufacturing to Mexico or Vietnam to avoid China tariffs may still be affected. If other countries respond with tariffs of their own, global trade could suffer, impacting U.S. businesses. Targeting countries with trade surpluses—including those with Value-Added Tax (VAT) systems—could affect over 175 nations, further complicating trade relations.
Tariff Implications: Political Ramifications for Trump
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