6 August
Lawrence Summers warns of negative impact of Trump's tariff policy on US economy
Lawrence Summers, former US Treasury Secretary, criticized new tariff hikes by the Trump administration and called the measures destructive for the economy. He believes they will disrupt supply chains and boost consumer prices.
The official thinks the consequences of the US government raising import duties could include a simultaneous increase in unemployment and inflation. While on Bloomberg Television, Summers pointed to the dangers such tariff policies pose to the country’s investment appeal.
He also warned of serious economic consequences, especially for the Federal Reserve. The US central bank will have to deal with an artificial increase in prices while deciding on its future strategy. At the same time, historical data shows consumers have to almost fully bear extra costs, Summers notes.
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