Mohamed El-Erian, Allianz Chief Economic Advisor, has expressed concern that US President Donald Trump’s import tariffs will worsen the economic outlook. In an interview with CNN, El-Erian described the situation as “a strong whiff of stagflation,” characterized by lower growth and higher inflation. The expert warned that tariffs would further accentuate this trend, potentially leading to more economic instability.
El-Erian’s comments come amid a tumultuous period in global trade relations. Trump’s administration has imposed various tariffs on imported goods, sparking retaliation from other countries. The move has raised concerns about the impact on the US economy and global growth.
The Allianz chief economist cautioned that the tariffs would “just accentuate the smell of stagflation.” His warning highlights the potential risks associated with protectionist trade policies and the need for policymakers to consider their long-term consequences.
As the global economic landscape continues to evolve, El-Erian’s comments serve as a timely reminder of the importance of addressing underlying economic issues rather than resorting to protectionist measures.
Source: https://edition.cnn.com/2025/03/05/Tv/video/mohamed-el-erian-on-the-impact-of-donald-trumps-import-tariffs