Economists Debate Impact of Trump's Tariffs on Inflation and Prices

A senior Bank of England economist, Swati Dhingra, suggests that Donald Trump's proposed 60% tariffs on Chinese imports could lower global inflation by forcing Chinese exporters to reduce prices in other markets to maintain trade volumes. While this could decrease global goods prices, it might also lead to a trade war if other countries retaliate with tariffs on US imports. The situation draws parallels with Brexit, which led to permanently higher prices in the UK. Analysts warn that a trade war could further weaken the eurozone economy.