tariff

In particular, economists say the former and soon-to-be-again president’s stated plans for sweeping tariffs and tax cuts could reignite inflation and significantly raise the deficit, thus putting upward pressure on home loan costs.

Trump has proposed sweeping tariffs and large tax cuts, something experts say would likely boost inflation and the nation’s deficit — two things that typically put upward pressure on mortgage rates.

Higher tariffs, which Trump can enact without approval from Congress, would mean manufacturers will either pass prices onto consumers or lower their profit margins, which affects investor enthusiasm.

If Trump follows through on his promises to impose massive tariffs and expel millions of undocumented migrants, inflation will soar.

Trump has dodged it, saying he wouldn’t have to use military force because Xi knew he was “crazy”, and he would impose paralysing tariffs on Chinese imports if that happened.