Going against the tide this Ivy League professor says Donald Trump's tariffs could be a winner for the U.S; here's the reasons he gave
US President- elect Donald Trump will actually face upon his return to office in the year 2025, reported Fortune.
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According to Fortune, the US economy actually appears to be relatively strong compared to other nations which are now grappling with significant economic challenges. This ongoing situation might provide the US with an advantage in implementing tariffs which is a key component of US President- elect Donald Trump's reelection strategy.
Eswar Prasad noted that while tariffs could lead to price increases for consumers, at the same time, they might disproportionately impact other countries while making the US seem like a ‘winner’, asserted Fortune. US President- elect Donald Trump has actually promised to impose tariffs as high as 60% on Chinese goods and 25% on imports from Canada and Mexico if they do not address issues like illegal immigration.
In spite of such warnings from CEOs about potential inflation, Eswar Prasad emphasized on the fact that strong productivity growth in the US could actually mitigate some negative effects.
The economic outlook for China is particularly bleak with declining consumer demand and increased reliance on exports amidst a severe real estate crisis, noted Fortune. Eswar
