Source link : https://earth-news.info/general/how-trumps-tariffs-could-backfire-by-driving-investors-away-from-american-assets/
The Trump administration’s tariff policies have sparked widespread debate over their impact on the U.S. economy. According to a new analysis from the Peterson Institute for International Economics, the economic damage from these tariffs could be significantly amplified if they prompt investors to pull back from American assets. The report highlights concerns that diminished foreign investment may undermine growth prospects, exacerbating the tariffs’ already harmful effects on trade and domestic industries. As trade tensions persist, experts warn that the broader financial implications of the tariffs deserve closer scrutiny.
Trump’s Tariffs Risk Investor Confidence and Capital Flight from US Markets
New tariffs implemented under the Trump administration are more than just a trade policy tool; they pose a significant risk to the broader financial ecosystem in the United States. Investors, both domestic and foreign, may view heightened trade tensions as a red flag, prompting them to reconsider allocations to American assets. This uncertainty can trigger capital flight, weakening the dollar and raising borrowing costs, which ultimately stifles economic growth. Investor confidence hinges on stability and predictability, and ongoing tariff disputes threaten these core pillars by introducing volatility into market expectations.
According to recent analysis by the Peterson Institute for International Economics, the impact of tariffs on asset markets extends beyond…
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Author : earthnews
Publish date : 2025-06-30 00:33:00
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