Washington, D.C., February 19, 2025: A Standard Chartered report warns that President Donald Trump’s proposed tariffs could increase U.S. PCE inflation by 0.7% and reduce GDP by 1.2%. Higher import costs may lead to rising consumer prices, with the overall impact depending on tariff rates, trade partner reactions, and currency fluctuations.
The report also highlights that U.S. tariff rates could exceed 10%, the highest since the 1940s, up from the current 2.3%. While aimed at boosting U.S. competitiveness, the tariffs may strain relations with key trading partners like Mexico, Canada, and the EU, while indirectly affecting China due to its reliance on global exports.
