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Trump's sharp tariff hikes could speed up China's shift to new markets and offshore factories

The article from Yahoo Finance discusses the potential economic impacts of former President Donald Trump's proposed tariff hikes if he were to win the 2024 election. Trump has suggested implementing a 10% tariff on all imports and a 60% or higher tariff on Chinese goods. Economists warn that these measures could lead to significant inflation, with estimates suggesting an increase of 0.6% in consumer prices for every 1% increase in tariffs. This could result in a 3% rise in inflation if the 10% tariff on all imports is enacted. Additionally, these tariffs might provoke retaliatory measures from other countries, potentially sparking a trade war. The article also notes that while tariffs could raise revenue for the government, they would likely increase costs for consumers and businesses, potentially slowing economic growth. Critics argue that these policies could undo recent progress in reducing inflation and might not be as beneficial for American workers as Trump claims, given the complex global trade dynamics.

Read the Full YAHOO!Finance Article at [ https://finance.yahoo.com/news/trumps-sharp-tariff-hikes-could-135217426.html ]