Trump's tariff plans may negatively impact global credit due to potential inflation concerns

From Investing: 2025-01-11 07:00:00

President-elect Donald Trump announced plans to impose tariffs of up to 10% on global imports, including 60% on items from China and 25% on products from Canada and Mexico. Investors are concerned about potential inflation and limited room for Federal Reserve rate cuts. Fed officials are uncertain about the impact on inflation and may delay further interest rate reductions. The uncertainty has led to expectations that borrowing costs will remain unchanged until at least May. Trump is considering declaring a national economic emergency to support the tariffs, despite denying reports of scaling back levies on critical goods. Analysts warn that the tariffs could negatively impact global credit activity, particularly in the European Union.



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