Tariffs and Economic Uncertainty

This chapter examines the potential economic effects of U.S. tariffs on GDP growth, inflation, and domestic markets, drawing on projections from the Federal Reserve. It highlights the immediate negative impacts of tariffs and the complexity of responses from international players, including retaliatory measures from countries like Canada and China. The discourse also investigates the sustainability of the U.S. trade deficit and the dynamics of global finance, especially concerning currency manipulation and investment flows.

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