Donald Trump acknowledges that the tariffs will lead to difficult times for the US economy.
On Fox News, Trump responded to rumours of a recession in the US this year, which he couldn’t deny: “I hate to predict these things, but there’s a transition period, because what we’re doing is so great that we’re bringing wealth back to the United States.”
Imports from Mexico and Canada are now taxed at 25%, apart from Canadian hydrocarbons, which are taxed at 10%. Products from China are subject to a 20% tariff.
Stock markets have been falling since US President Donald Trump confirmed last week that tariffs would be imposed on Canada, Mexico and China.
These protectionist measures have sparked fears among investors.
Some American economic media are talking about ‘Trumpflation’.
Source| Tagtik