Trump’s Tariffs Haven’t Even Been Implemented Yet—But They’re Already Affecting The Economy | Global News Avenue

Donald Trump’s President Donald Trump has affected the taxes on Mexico and Canada.

On Friday afternoon, the press secretary Karoline Leavitt said that Trump was planning to impose 25 % tariffs on Mexico and Canada, and began a 10 % tariff on China since Saturday. However, according to news reports, as of Friday afternoon, the country is still negotiating.

According to news media reports, including Wall Street JournalTrump and his advisers are negotiating with the largest trading partners in the United States. The extensive tariffs on all products, the limited or “width period” of certain products is considered until March 1.

Lack of clearness on the details of the plan, which makes economists’ predictions on the economic impact of Trump’s election. Some forecasters warn that extensive tariffs may cause inflation By increasing pricesEspecially if they include petroleum and natural gas. Tariff conversations have affected the economy in many ways.

Tariff conversations make the Fed even more reluctant to reduce interest rates

In the last quarter of 2024, Fed officials reduced the benchmark interest rate of the Central Bank 3 times, a total of one percentage point, which reduced it from the height of more than one year or more. The Fed has reduced the speed of reducing the cost of lending and increasing the economy. As the trend of consumer prices increased, it reduced its movement with inflation to crack down on inflation to achieve the goal of 2 % of the annual interest rate.

Since then, inflation has remained stubborn, prompting the Federal Reserve to temporarily shelter the further reduction rate of tax reduction. Fed officials list one of the reasons for the uncertainty about Trump’s economic policy (including tariffs), New and cautious methodEssence Trump calls on the Federal Reserve to reduce its influence interest rates because it will affect the lending costs of various other loans, so low interest rates tend to promote economic growth and create employment opportunities.

The Federal Reserve Chairman Jerome Powell said in the media: “In many places, the price of tariff prices between manufacturers and consumers can emerge; so many variables. Therefore, we only need to wait and see. “This week held a meeting with reporters.

Rising fiscal yield rate

The possibility of tariffs is also proposed 10 years of fiscal revenue upward pressureThis usually agrees with investors’ concerns about inflation. Fiscal revenue may affect other loans. For example, higher yields have increased for 30 years mortgage loans.

After Trump was elected, the income of the Ministry of Finance surged, and some economists said that this part was due to investors’ concerns about tariffs.

The company is buying imports

When the deadline for the tariffs approached, American importers carried out shopping frenzy and snatched products before taxation.

As a result, the difference between the trade deficit -the value between the value of import and export-Reading in DecemberSurprised economists. Since Trump was elected, imports have increased by 8.4 %, showing to economists that the peak is stimulated by companies that want to increase tariffs.