Global Economic Downturn Imminent Without Tariff Reversal

Inflation to Accelerate in Coming Months if April 2 Tariffs Take Effect, Economist Warns

A top economist has warned that inflation is likely to accelerate in the coming months if the Trump administration's proposed tariffs on $200 billion worth of Chinese goods take effect on April 2. The tariffs, which would add a 25% duty to the affected goods, could lead to a surge in prices and a rise in the Consumer Price Index (CPI).

According to a report by Benzinga, the tariffs could lead to a 0.2% to 0.3% increase in the CPI, which would be a significant acceleration from the current rate of inflation. The report also notes that the tariffs could lead to a 1% to 2% increase in the Producer Price Index (PPI), which measures the prices paid by producers for goods and services.

The proposed tariffs are part of the Trump administration's efforts to address the perceived unfair trade practices of China, which has been accused of intellectual property theft and forced technology transfer. The tariffs have been met with opposition from many businesses and trade organizations, who argue that they will lead to higher prices and reduced economic activity.

The warning from the economist comes as the Federal Reserve is considering whether to raise interest rates again in the coming months. The Fed has already raised rates three times in the past year, and many economists believe that it will raise rates again in the coming months to combat inflationary pressures.

The tariffs are just the latest in a series of trade-related developments that have been affecting the global economy. The ongoing trade tensions between the US and China have been a major source of uncertainty for investors, and have led to a decline in global trade and economic activity.

The proposed tariffs are expected to take effect on April 2, unless a last-minute agreement is reached between the US and China. The tariffs could have significant implications for the global economy, and could lead to a rise in inflation and interest rates.