Why Trump's Sweeping New Tariffs Are Fueling Stagflation Concerns Among Economists
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President Donald Trump's sweeping new tariffs are raising concerns among economists that the U.S. economy could be heading toward stagflation—a dangerous mix of high inflation and stagnant growth. The new tariffs, which took effect on August 7, are pushing the effective average tariff rate to 18%, the highest since 1934. Economists warn that these tariffs could lead to higher prices, slower GDP growth, and a weaker job market, creating a challenging scenario for the U.S. economy.