Impact of Trump's Tariffs on Global Economy

The prospect of Donald Trump's return to the White House raises significant uncertainties for the U.S. economy, particularly regarding proposed policies like higher tariffs, deregulation, and a contentious relationship with the Federal Reserve. Experts have noted that Trump's potential tariffs could disrupt international trade and increase inflationary pressures, while European Central Bank officials express greater concern over the negative impacts on economic growth rather than inflation. Additionally, rising long-term Treasury yields, currently at 4.43%, are adding to concerns about the federal deficit, which could complicate Trump's fiscal policies. As the economy currently shows solid fundamentals with low unemployment and declining inflation, the potential for Trump's policies to upend this stability remains a critical concern for economists and policymakers alike.