“We bring prosperity back to America,” said US President Donald Trump at the weekend. For economists, on the other hand, it is clear that customs flices tax the economy and make a recession.
In a survey, the experts discovered that Trump’s trade conflicts do not hold consumers. “The mentions of trade and rates have risen sharply and have returned to a level that has not been reached since 2019,” says economist Stephanie Guichard of Conference Board. If punitive rates are coming, this should cause more inflation-the American importers must pay the taxes. It should then pass on the higher costs to its customers.
In fact, these already increasing prices fear. In February, inflation increased from 5.2 to six percent, which is the highest value since May 2023. The symbol of fear of the population’s inflation has become egg prices: in some major cities, a dozen eggs now cost up to ten dollars (converts 9.2 euros), since the US bodies and other bodies and other bodies and other bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies, and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies and bodies’s bodies and bodies and bodies. Other bodies and other bodies and other bodies in the US, about 163 million chickens in the US. died or cried.
Work market cooled
The labor market has cooled this year. 151,000 new jobs were founded in February, the unemployment rate was 4.1 percent. “We do not see the US economy in a recession, but the Labor Market report for February should not prevent market participants from speculating about it,” said analyst Dirk Chlench of Landesbank Baden-Württemberg (LBBW). Trump must also contribute to this: the plans for loss of radical staff in the federal government have left the first traces.
Börsians also look pessimistic in the future. “Donald Trump’s trade policy to make it at the same time with his customs claims with Canada, Mexico and China, and at the same time increase the differences with Europe, ensures an unprecedented uncertainty of investors,” said Manfred Hübner of German investment advice Sentix.
In summary, the experts assume that rates against Mexico, China and Canada, as well as imminent trade conflicts, are the risk of growth and inflation. The economic growth of the US could decrease by 0.7 to 1.1 percentage points in the coming quarters.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
