Impact of Tariffs on Global Trade

Tariffs on China and auto imports from Europe are expected to affect inflation and economic growth, although their impact is projected to be manageable. Different strategies for implementing tariffs exist, such as initiating a high percentage immediately versus a gradual increase over time, each having its own implications for businesses. While the anticipation of tariffs creates uncertainty, it is expected that the net effect will not dramatically alter the generally positive inflation outlook and growth rates. The expectation is that, despite potential headwinds from tariffs, growth projections remain optimistic, with GDP predicted to hit 2.5% by 2025.