Trump's Economic Policies and Inflation Concerns

Trump's economic policies, such as tariffs, tax cuts, and immigration controls, are a mix of supply-side and demand-side shocks. While he enjoys protectionism and a weak dollar for competitiveness, the imposition of tariffs often leads to a currency revaluation that can offset the intended benefits. This cycle can result in self-defeating effects where the currency appreciation negates the advantages gained from tariffs, creating a puzzling situation for Trump's economic strategy.