Investing.com -- The introduction of potentially sweeping tariffs could significantly reshape the economic landscape for both consumers and businesses, as flagged by analysts at Yardeni Research.
This could squeeze purchasing power, particularly for lower- and middle-income households, which are more vulnerable to price hikes on essentials like food and everyday goods. For instance, a stronger U.S. dollar—often a byproduct of tariffs—can mitigate some of the price increases by making imports relatively cheaper in dollar terms.
Nevertheless, the broader impact on global supply chains could pose risks. Tariffs disrupt established trade flows, forcing businesses to reevaluate sourcing and manufacturing strategies. Geopolitically, the imposition of tariffs often leads to retaliatory measures from trade partners. This tit-for-tat dynamic can escalate tensions, reduce global trade volumes, and impact emerging markets disproportionately.