The prospect of significant tariffs under Donald Trump's administration is causing widespread concern among economists and businesses worldwide. Economists warn that these tariffs could trigger retaliatory measures from the European Union and other nations, leading to significant economic strain. The potential for a trade war raises fears of increased inflation and job losses, with public investment and supply chain diversification cited as necessary countermeasures.
US businesses are already preparing for the impact, stockpiling goods from abroad to mitigate future costs. The imposition of up to 60% tariffs on Chinese imports and even higher rates on goods from Mexico could disrupt global supply chains. Economists argue that these measures would act like a consumption tax, ultimately burdening American consumers and potentially leading to reduced production and employment in key sectors.
In response, the EU is urged to invest heavily to protect its economic stability. Despite market optimism fueled by Trump's promises of tax cuts and deregulation, experts caution that the resulting economic volatility could pose serious risks.
