Stephen Brown: U.S. Tariffs May Remain Due to Fiscal Pressures
What happened
Stephen Brown, Chief North America Economist at Capital Economics, advised that the next U.S. administration may not rush to remove existing tariffs due to the country's precarious fiscal situation. Brown noted that tariffs provide gross revenue, accounting for roughly one percent of U.S. GDP based on an average tariff rate of 11 percent.
From financialpost.com
Why it matters
The U.S. federal budget deficit is estimated to reach six percent of GDP, or nearly US$2 trillion, this fiscal year, while the total federal debt stands at US$40.2 trillion. Brown stated that the poor financial landscape is pressuring bond markets with higher yields.
From financialpost.com
Who's involved
- Stephen BrownChief North America Economist at Capital Economics, providing analysis on U.S. trade policy.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Fox Television StationsSpeculative
Businesses might face higher import costs if the administration imposes new tariffs on allies.
- FEDSpeculative
Investment funding might be affected by the continued pressure on bond markets and higher yields.
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The entities involved
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Stephen Brown
researcher ORCID 0000-0002-0421-1660
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