FMP

FMP

Trump’s Tariffs Could Trigger U.S. Stagflation, Analysts Warn

President Donald Trump's new tariffs could weigh on U.S. economic growth and fuel inflation, according to Evercore ISI analysts.

🔹 What's Happening?

Over the weekend, Trump imposed 25% tariffs on imports from Canada & Mexico and a 10% levy on Canadian energy products and Chinese goods.

🔹 Market & Economic Impact

🔻 U.S. GDP Drag: Analysts estimate a 0.4%+ hit to GDP.
🔺 Inflationary Pressure: Could push price gains up by 0.4% or more.
⚠️ Stagflation Risk: Weak growth + rising inflation could strain markets.

🔹 Escalating Trade War

  • Canada & Mexico announced retaliatory tariffs on U.S. goods.
  • China plans to challenge the tariffs at the WTO and hinted at further countermeasures.
  • No clear benchmarks set by Trump officials for removing the tariffs.

🔹 What's Next?

Markets are closely watching how corporate earnings and sector valuations respond. Stay ahead with:
Earnings Calendar API - Track companies impacted by tariffs.
Sector P/E Ratio API - Identify inflation-sensitive sectors.

With rising uncertainty, investors should brace for market volatility in the weeks ahead.