I agree that tarrifs should be inflatory for the US and that the inflation is underreported in EU, as everywhere, most of the time...
but if Trumps enacts significant tarrifs for EU exporters, I would expect to be deflationary for the EU ... already now, "growth" is poor in the EU, but if would be discounted with "real inflation" it is already negative even now ....
Tariffs are stagflationary globally because they lead to trade wars which are creating not only inflation globally but also recessions. With the implementation of tariffs the world will move inevitably into an inflationary bust, first in Europe and Japan and ultimately in the US. Trump doesnt understand that the world in interconnected. It will be remembered as The Trump Stagflation.
I agree that tarrifs should be inflatory for the US and that the inflation is underreported in EU, as everywhere, most of the time...
but if Trumps enacts significant tarrifs for EU exporters, I would expect to be deflationary for the EU ... already now, "growth" is poor in the EU, but if would be discounted with "real inflation" it is already negative even now ....
What do you think?
Tariffs are stagflationary globally because they lead to trade wars which are creating not only inflation globally but also recessions. With the implementation of tariffs the world will move inevitably into an inflationary bust, first in Europe and Japan and ultimately in the US. Trump doesnt understand that the world in interconnected. It will be remembered as The Trump Stagflation.