Expert Claims Trump's Tariffs Will Spark Inflation and Recession
Inflation may be the catalyst for a recession, but according to Croatian economic analyst Petar Vuskovic, the tariffs instituted by U.S. President Donald Trump are the sparks that will trigger it. Vuskovic shared his insights during an interview...
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Inflation may be the catalyst for a recession, but according to Croatian economic analyst Petar Vuskovic, the tariffs instituted by U.S. President Donald Trump are the sparks that will trigger it. Vuskovic shared his insights during an interview with N1 Television on Tuesday.
"It is not a question of whether the economic Armageddon will hit us because it has already hit us. We can see it from the collapse of the stock markets. Investors are scared; it is not known what will happen next. This is a situation that definitely marks a new period, which is the period of recession," Vuskovic stated.
On Monday, European stock markets experienced their fourth consecutive decline, while the S&P 500 saw its losses continue for a third day, driven by worries surrounding U.S. tariffs.
Companies are beginning to cut jobs, and the current climate is "practically worse" than during the COVID-19 pandemic. "All stakeholders are at risk, from state budget revenues, investors, company owners, employees," he remarked. "Simply put, the economic situation is bad."
Regarding Croatia, Vuskovic pointed out that the nation exports €587 million worth of goods to the United States annually, which accounts for less than 10 percent of Europe's total exports to the U.S. market. However, the tariffs will lead to higher prices on imported goods for Croatian consumers, such as computer components.
"Production costs will increase through the growth of raw material imports, and exports will be more expensive, and the biggest losers will be companies that export wines, oils, medicines, sardines, pharmaceutical products, machinery, wood products," he elaborated, cautioning that "for the Croatian economy, customs duties could also mean a drop in budget revenues, especially if the exporter segment is severely affected."
In the face of significant opposition, Trump enacted an executive order last week concerning so-called reciprocal tariffs, which includes a 10-percent "minimum baseline tariff" on all imports along with higher rates for certain trading partners.
"I do not think that this protectionist economic policy is good. Trump will protect the richest with tariffs, and will make his citizens poorer," Vuskovic concluded.
Jessica Kline for TROIB News
"It is not a question of whether the economic Armageddon will hit us because it has already hit us. We can see it from the collapse of the stock markets. Investors are scared; it is not known what will happen next. This is a situation that definitely marks a new period, which is the period of recession," Vuskovic stated.
On Monday, European stock markets experienced their fourth consecutive decline, while the S&P 500 saw its losses continue for a third day, driven by worries surrounding U.S. tariffs.
Companies are beginning to cut jobs, and the current climate is "practically worse" than during the COVID-19 pandemic. "All stakeholders are at risk, from state budget revenues, investors, company owners, employees," he remarked. "Simply put, the economic situation is bad."
Regarding Croatia, Vuskovic pointed out that the nation exports €587 million worth of goods to the United States annually, which accounts for less than 10 percent of Europe's total exports to the U.S. market. However, the tariffs will lead to higher prices on imported goods for Croatian consumers, such as computer components.
"Production costs will increase through the growth of raw material imports, and exports will be more expensive, and the biggest losers will be companies that export wines, oils, medicines, sardines, pharmaceutical products, machinery, wood products," he elaborated, cautioning that "for the Croatian economy, customs duties could also mean a drop in budget revenues, especially if the exporter segment is severely affected."
In the face of significant opposition, Trump enacted an executive order last week concerning so-called reciprocal tariffs, which includes a 10-percent "minimum baseline tariff" on all imports along with higher rates for certain trading partners.
"I do not think that this protectionist economic policy is good. Trump will protect the richest with tariffs, and will make his citizens poorer," Vuskovic concluded.
Jessica Kline for TROIB News
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