Will Trump's Tariff Policy Escalation Become a Catalyst for U.S. Inflation?

TradingKey - Trump's tariff war intensifies as multiple countries face new tariffs, with the New York Fed President warning it could worsen inflation.  

On Tuesday, New York Federal Reserve President John Williams stated that Trump's tariff increases are expected to exacerbate inflation in the United States.

On March 4, U.S. tariff policies targeting Canada and Mexico took effect, imposing a 25% tariff. In response to the aggressive U.S. tariff measures, Canada quickly retaliated. On the same day, Canadian Prime Minister Justin Trudeau announced a 25% retaliatory tariff on U.S. imports.

Facing Canada's retaliation, Trump responded on social media, stating, "Canada's retaliatory tariffs on the U.S. will immediately trigger an equivalent increase in U.S. tariffs."

Meanwhile, China has also announced a 15% tariff on U.S. chicken and cotton, a 10% tariff on sorghum, soybeans, pork, and beef, and launched an anti-circumvention investigation into U.S. optical fiber products.