Donald Trump’s proposal for extreme tariffs could derail the current path of disinflation and push interest rates higher, according to Tim Adams, CEO of the Institute of International Finance. Trump’s plan, which includes a 20% tariff on all goods from all countries and a higher 60% rate on Chinese imports, is seen as inflationary by analysts. Adams told CNBC that these tariffs would break the progress on price stability. While Trump argues the tariffs would encourage companies to build factories in the U.S., experts warn the overall package would drive inflation upward.
