The US economy is facing an uncomfortable combination of stagnant growth and rising prices, commonly known as stagflation. This warning sign has been triggered by President Trump’s decision to significantly increase tariffs on imported goods.
Stagflation occurs when inflation, or rising prices, coincides with sluggish economic growth. It’s a rare but potentially severe economic condition that can have far-reaching consequences for consumers and businesses alike. The impact of these increased tariffs will be felt across various sectors, leading to potential weaker economic growth and higher prices.
Source: https://www.wsj.com/economy/trade/what-is-stagflation-trump-tariffs-b8be754c