Trump fares are punitive and can cost US jobs, as well as increasing inflation, according to former US-Basking in Singapore
Trump’s tariffs are not just symbolic, but punitive, and can cost jobs and increase inflation in the US, according to former US-Basking in Singapore.
Frank Lavin, former US-BAKE in Singapore, said 25% tariffs on steel and aluminum imports are not merely symbolic but “punitive”.
In an interview with CNBC, he warned that this trade war could result in US job loss and increase inflationary pressure, which may lead the federal book to postpone cuts in interest rates.
Impact of Trump’s punitive tariffs on the American economy
Lavin pointed out that the rates proposed by President Donald Trump go beyond a symbolic gesture. They are punitive and can “cost jobs” in the United States, especially in the automotive sector. During his participation in CNBC’s “Street Signs Asia” program, he said: “We are about to receive bad news in the short term”.
The former editor explained that global steel and aluminum tariffs, especially those directed to China, will not have a quick resolution. “This will force other countries to respond. We will see a deterioration in the trade and, worse, from Trump’s point of view, we will see an increase in inflationary pressure, ”said Lavin.
Commercial War
Trump signed executive orders imposing 25% tariffs on steel and aluminum imports, adopting a “reciprocal” stance.
He stated, “If they charge us, we charge them. If they are 25%, we will be 25%. If they are 10%, we will be 10%. ”
Lavin stressed that this approach goes beyond using tariffs as a bargaining chip, creating a complex scenario for international responses.
Negative effects on the US economy
Although the American economy is in good shape today, Lavin warned that tariffs will add negative inefficiencies and pressures.
Increased inflation may prevent the Federal to reserve from reducing interest rates, which has already caused Trump discontent earlier. “If he maintains these rates, there will be no flexibility next time,” concluded Lavin.
Source: https://www.ocafezinho.com/2025/02/11/guerra-comercial-de-trump-pode-devastar-empregos-nos-eua/
