Fed's Kashkari says Trump tariffs could reheat inflation if they provoke global trade 'tit for tat'

Published On Nov 10, 2024, 1:04 PM

Neel Kashkari, the President of the Minneapolis Federal Reserve, has warned that proposed tariffs by President-elect Donald Trump could exacerbate inflation if other countries retaliate. Trump plans to impose universal tariffs on imports, particularly a 60% tariff on Chinese goods. Despite recent progress in reducing inflation, Kashkari expresses concern that escalating trade tensions could undermine this progress and introduce significant uncertainty into the economy.

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The introduction of high tariffs could lead to retaliatory measures from trading partners, potentially escalating trade wars. This can disrupt supply chains and lead to increased costs for consumers, resulting in inflationary pressures, which could negatively impact economic stability.

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