Analysts harshly criticize Trump's tariffs: it severely hurts USA consumers and serves no beneficial purpose!
① Trump signed an executive order on 'reciprocal tariffs,' leading to a decline in Global stock markets, with US Index Futures dropping sharply as investors turned to safe Assets; ② investment bank Analysts generally hold a pessimistic view on 'reciprocal tariffs,' predicting an increased risk of recession in the USA, with tariff costs being passed on to Consumers, affecting inflation and economic growth.
The layered impact of Trump's tariff policy on a Global scale is becoming evident, and the USA economy is bearing multiple pressures.
According to Dow Jones News, Donald Trump's new tariff policy is seen by economists as a "tsunami" that will impact the Global economy, with the scope and depth of its effects potentially altering the existing economic order completely. Multiple authoritative experts point out that this policy will not only raise prices in the USA and suppress Consumer spending but may also disrupt the Global trade system, even leading many countries into recession. The Global impacts are manifesting in layers. Neil Shearing, Chief Economist at Capital Economics, analyzed that the degree of impact varies significantly across different regions: Canada and Mexico will face relatively minor disruptions; countries in Asia, such as Vietnam, will suffer the most severe blows; the European Union and Japan.
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Open Source Securities: Trump announced that the scope of "reciprocal tariffs" exceeds expectations, exacerbating the risk of "stagflation" in the USA.
In the face of the risk of "stagflation," the Federal Reserve can only choose to wait and see, making it difficult to cut interest rates in the short term. This will further increase the risk of economic downturn and add downward pressure on the market.
A $5 trillion tax cut! The Republican Party in the USA Senate has proposed a plan that will face opposition from the House of Representatives.
Republican senators in the USA have proposed a fiscal framework to cut taxes by more than 5 trillion dollars over the next decade, taking a crucial step toward legislating the Trump agenda. However, passing it is far from easy: both the House and Senate must reach an agreement twice, first on the budget framework and then on a bill that can be passed without Democratic votes. In each chamber, Republicans can afford to lose no more than three members, and there are disagreements among lawmakers on broad issues like deficits and spending as well as on dozens of details.
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