Impact of Trump's Tariffs on the Economy

The announcement of significant tariffs by President Trump has raised major concerns about potential economic repercussions. A baseline tariff of 10% on all imports, alongside steeper tariffs on countries like China and the European Union, has triggered fears of rising prices and inflation. Economists have warned that these measures could lead to a recession, with some forecasts suggesting negative GDP growth could occur as early as the second quarter. The swift market reactions to these developments indicate that investors are apprehensive about the long-term implications of protectionist policies and the likelihood of retaliatory measures from affected trading partners.