Part 5/9:
Inflationary Pressure: The most commonly echoed concern is the potential for increased prices on imported goods, inducing inflation. Past analyses, including findings from the San Francisco Fed, suggest that the overall consumer price increase due to tariffs might be limited to 1-2%, as a significant portion of costs in goods might not emanate from their countries of origin.
Global Trade Disruption: The concern around a potential breakdown in global trade relations is alarming, paralleling historical instances like the Smoot-Hawley Tariff Act of 1930, which many economists believe exacerbated the Great Depression.