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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-tariffs-could-push-us-inflation-up-by-2-1-warns-devere-group/
US inflation could surge by as much as 2.1% if President Donald Trump’s proposed tariffs on Canada, Mexico, and China take effect, according to a forecast by global financial advisory firm deVere Group.
The analysis highlights the potential economic fallout from Trump’s announcement on Thursday, which includes a 25% tariff on imports from Canada and Mexico, an additional 10% tariff on Chinese goods, and reciprocal tariffs on global trade partners.
deVere Group CEO Nigel Green warns that tariffs on Canada and Mexico alone could drive inflation up by 1.1% to 1.4%, while the additional duties on China could add another 0.7%. “The economic implications are vast,” Green said. “The price of everyday goods will rise, corporate profits will feel the squeeze, and consumers will ultimately foot the bill.”
The tariffs threaten to disrupt deeply integrated North American supply chains, particularly in industries like automotive and agriculture, where cost surges could exacerbate inflationary pressures. Meanwhile, the additional 10% tariff on Chinese goods will further strain American businesses reliant on Chinese manufacturing, driving up costs across sectors such as technology and retail.
Green notes that the Federal Reserve may be forced to maintain a hawkish stance on interest rates for longer than anticipated, delaying potential rate cuts expected in 2025. “If inflation persists at elevated levels, it could erode real purchasing power, fueling market volatility and reshaping asset allocations globally,” he added.
The US dollar’s strength could initially benefit from trade tensions and inflationary fears, but its long-term trajectory will depend on the Fed’s response. For equity markets, sectors like commodities, energy, and industrials may see upside potential, while import-reliant industries could face significant headwinds.
“The trade war narrative is no longer confined to rhetoric—it is materializing into concrete economic shifts,” Green emphasized. “The challenge for investors is not merely to react, but to anticipate and act decisively.”
As the global economy braces for the ripple effects of these tariffs, businesses and consumers alike are likely to feel the pinch, with higher costs and inflationary pressures reshaping the economic landscape.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-tariffs-could-push-us-inflation-up-by-2-1-warns-devere-group/
