WALL STREET WARNS: Trump's trade policies could bring the US back to an economic horror from the 1970s
Jae C. Hong/AP Images
- President Donald Trump is aggressively pursuing protectionist policies.
- Tariffs cause prices to rise and can stall growth.
- Analysts are warning that 1970s-like stagflation could be ahead.
In a broad effort to rearrange global trade relationships, President Donald Trump has slapped tariffs on some of the US's biggest business partners. And as effects of protectionism kick in, analysts caution against heading toward a repeat of the 1970s when rising inflation, high unemployment levels, and stalling growth plagued the economy.
Washington and Beijing have followed through with $34 billion worth of tariffs on one another, and Trump has threatened to impose additional duties on nearly all Chinese imports to the US. Trump has also started trade fights with Canada, the European Union, and Mexico.See the rest of the story at Business Insider
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