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2/2025
Who Will Pay for Trump’s Tariffs?
How Trade Wars Could Impact Income and Inflation
Trump’s second presidency is shaping up to be even more aggressive than the first, with no restraints. His trade policies are driven by a mercantilist view of the economy, a narrow understanding of global interdependencies, and the interests of Big Tech. Will tariffs be used as a mere bargaining chip, or will they be enforced indiscriminately, sparking new trade wars? How will they affect income and inflation? What should we expect in key trade conflicts – between the U.S. and China, North America, Europe, and emerging markets? And what role can the European Union play? Italy, on its own, has little influence.
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