Trump’s proposed economic policies of high tariffs and mass deportations are raising concerns among economists about potential price increases, labor shortages, and overall economic instability.
- Trump proposes 60% tariff on Chinese imports and 10-20% on all other imports
- Economists predict higher prices, product shortages, and economic chaos
- Mass deportations could lead to labor shortages in key industries
- Local economies with large immigrant populations would be hit hard
- Estimates of economic impact range from slowed growth to potential depression-era unemployment
Goldman Sachs’ chief economist predicts that the 10% tariffs alone could increase inflation by one percentage point.
Another key aspect of Trump’s economic plan involves the mass deportation of undocumented immigrants, potentially affecting 10 to 20 million people. This policy raises concerns about labor shortages in industries heavily reliant on immigrant workers, such as agriculture, construction, services, and manufacturing.
Economists warn that sudden labor shortages could make it harder for companies to produce goods and provide services, potentially fueling further inflation. Baker notes that deporting a significant portion of the agricultural workforce could lead to substantial increases in food prices.
The proposed deportations could also impact consumer spending, as immigrants contribute significantly to local economies. Edelberg suggests that even legal immigrants might leave voluntarily if the country becomes inhospitable, further reducing consumer demand and economic growth.
Local economies with larger immigrant populations are expected to be particularly affected. Businesses that have expanded based on current population levels might struggle with reduced customer bases and ongoing financial obligations.