Trump’s tariff policies feed economic concerns, economists expect a slower growth in the future

A recent survey conducted by the Wall Street Journal revealed that economists have greatly reduced growth estimates, increased inflation and unemployment expectations since the president Donald Trump It is largely assumed because of his commercial policies.

What happenedOn Saturday, the port stated that the economists modified their view on the American economy in light of President Trump’s firm policies. The primary driver of this change is the implementation of the definitions, which have risen to what is expected three months ago.

the reconnaissanceWhich collected responses from 64 academic economists and businessmen between 4 and 8 April, is expected to grow 0.8 % in the fourth quarter compared to the previous year. This is a significant decrease from the growth of GDP by 2 % expected in January.

The results extracted from the poll also indicate that economists have raised the possibility of stagnation in the next 12 months to 45 %, with a significant increase of 22 % in January. “We are dancing with stagnation,” Joseph DavisThe chief economist at Vanguard told The Outlet.

Also read: Trump grants the customs tariff for technology – including from China – in a sudden step

In addition, economists expect that the average tariff rate in the United States will rise about 19 degrees Celsius by 2025. This is expected to deduct 1.2 percentage points of GDP growth 2025 and contribute to additional percentage points in inflation.

James F. Smith From EconForecaster expected a growth of 3.1 % on the assumption that Trump will quickly retreat any tariff because it is “very heavy”.

“It looks like a great diplomacy,” Smith said.

The inability to predict Trump’s commercial policies, including his inconsistent stance on definitions, has increased the complexity of economic expectations. “No one – including, apparently, Trump himself – knows the end result,” the magazine said.

Why do it matter: The revised economic outlook emphasizes the long -term impact of Trump’s trade policies on the American economy. The expected rise in definitions and the increased possibility of stagnation may have significant effects on both companies and consumers.

The uncertainty surrounding these policies adds another layer of complexity of economic planning and prediction.

As such, investors, policy makers and companies will need to closely monitor these developments and control their strategies accordingly.

Read after that

Definitions to influence the final demand: Goldman Sachs analyst expects to drag companies and employment

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