Trump’s shock tariffs may raise costs for businesses and consumers, reducing spending and investment. Higher import prices could fuel inflation, prompting the Fed to maintain high interest rates, slowing growth. Retaliatory tariffs from other nations may hurt U.S. exports, weakening corporate earnings. Market uncertainty might deter capital inflows, dragging down stock valuations. Supply chain disruptions could lead to job losses, further dampening demand. A slowdown in global trade may push the U.S. economy into a recessionary cycle.
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