Perspectives from economists on tariffs

By Melissa Lucas

Sweeping reciprocal tariffs announced by President Trump which has raised concerns that unprecedented tariffs will tip US economy as well as global economy into recession is shocking the world like a bombshell, resulting into plummeting in global financial markets. Market caps for US markets wipe out $8 trillion since President Trump's inauguration, also Nasdaq has fallen into bear market territory.

The following are the perspectives from the economists about the significant impact of tariffs on economy.

The unprecedented tariffs has sparked dislocation around the globe. More retaliatory measures from other countries are widely expected. Escalating tariffs war will threaten to grown into a full blown trade war. Trade war is looming, which will ratcheted up investors fears of inflationary, recessionary and global economic growth risks. Markets are obviously underestimating the significantly negative spillover effect of Trump’s aggressive and policies.

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