PNN – Donald Trump, the former president and Republican candidate in the November 5, 2024 presidential election, wants to spend trillions of dollars on tax cuts, and his plan to pay for this has worried some economists.
According to the report of Pakistan News Network, former US President Donald Trump has proposed sweeping tariffs on all $3 trillion worth of imports into the US, including a 60 percent tariff on imports from China and a 10 percent tariff on imports from other countries.
The American CCN network affiliated with the American Democratic Party and one of the supporters of Kamla Harris, the candidate of this party in the 2024 elections, says that recently, Trump doubled this threat and said that in an effort to protect working-class jobs and punish what it calls unfair trade practices, it has imposed 20 percent tariffs on most imported goods.
In theory, the unprecedented tariff hike could raise trillions of dollars in government revenue, the budget that helps cover the costs of the tax cuts. However, many economists warn that the tariffs could backfire by raising prices for American families, destroying jobs and triggering a global trade war.
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One of the Goldman Sachs economists wrote in an analytical note on CNN: Trump’s economic policies – especially in trade – are shrinking the American economy. In contrast, Goldman Sachs predicted that Vice President Kamala Harris’ economic policy proposals would boost the economy.
Goldman and other experts fear that Trump’s proposed tough trade tactics could worsen the economic crisis in the United States.
David Kelly, chief global strategist at JP Morgan, told CNN in an interview: This is one of those fantasy economic proposals that could actually cause inflation and put us in recession.
Kelly warned that the tariffs would be a “full-blown deflationary machine,” threatening supply chains and inviting punitive responses from trading partners.
He said: It’s childish to think that if you punch someone in the nose, they won’t punch you back.