Trump’s tariffs could backfire, hurting US businesses abroad due to retaliation while also driving up inflation at home, the President of the Global Policy Institute Paolo von Schirach says. #Trump
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00:00Because we saw U.S. consumer spending actually rebounded in February,
00:06but many economists predict this could be down to higher prices,
00:10as you mentioned, in places like Walmart.
00:13So there are fears of rising inflation and a possible recession.
00:19Do you think these fears are founded?
00:23Well, yes, they are definitely founded.
00:26Of course, as you know, economic predictions most of the time tend to be wrong.
00:31Even those who do this professionally and advising everybody,
00:35so this is going to happen, that's going to happen,
00:37and then it doesn't, or it happens in a different way.
00:40But yes, when you create a situation whereby you are depressing American sales abroad,
00:48because countries that are targeted by tariffs will reciprocate, right,
00:52they will retaliate, and there will be tariffs on American exports.
00:56This will depress foreign sales for at least some American products,
01:01which means less business, probably layoffs.
01:04People will lose jobs because these companies, you know,
01:09cannot produce and export as much as they used to.
01:12That's one issue, and that's bad.
01:15That really is about recession.
01:17But then there's the inflationary element,
01:20because when you put tariffs on all sorts of imported goods,
01:25that means stuff becomes more expensive for the average American consumer.