Photo: Getty Images
President Donald Trump's sweeping new tariffs are stoking trade wars, triggering retaliatory tariffs, battering markets, increasing recession odds, and more, CNN reports.
Last week, Trump announced a baseline 10 percent tariff on all imported goods to the US as well as steep "reciprocal" tariffs on dozens of countries that the White House alleged were the "worst offenders" of charging high tariffs or imposing non-tariff trade barriers. Some of the additional levies came up north of 45 percent.
Trump's actions are shifting the global economy, pushing recession forecasts higher, and will have swift negative consequences across the country, experts say.
“As for the short-term, we are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products,” JPMorgan CEO Jamie Dimon said in a statement. “How this plays out on different products will partially depend on their substitutability and price elasticity. Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”
More short and long-term risks of Trump's tariffs include unpredictability in the market, lost investments, and sudden cost spikes spilling into the economy and causing last pain for the average American.
Confidence is also waning in the US dollar, according to Joe Brusuelas, RSM US chief economist.
“We can now not ignore nor avoid the discussion of the devaluation of the dollar and the dollar’s reserve currency status,” Brusuelas said in a statement.
Sung Won Sohn, professor of finance and economics at Loyola-Marymount University and president of SS Economic, said the best-case scenario for the economic impact of Trump's tariffs involved accelerated inflation, hits to real gross domestic product growth, and unemployment. In the worst case, Sohn noted that economic activity could sink 1.3 percent points, the US economy could lose 1.3 million jobs, and inflation could rise 1.3 percent points.
More tariffs could also be coming as a suite of crucial materials, including copper, computer chips, lumber, pharmaceuticals, and more, were exempt from last week's tariff action. The Trump administration has suggested that these products could face tariffs at a later date.
The Black Information Network is your source for Black News! Get the latest news 24/7 on The Black Information Network. Listen now on the iHeartRadio app or click HERE to tune in live.