Part 7/10:
The situation bears a striking resemblance to the trade dynamics of 2018 and 2019, during which the imposition of tariff policies led to economic stagnation rather than the inflationary pressures that many expected. As evidenced by past experiences, economic activity is curtailed more aggressively when trade wars erupt, with demand plummeting and companies adjusting to new market realities.
Historical precedents suggest that tariffs disrupt consumers' purchasing power, ultimately forcing adjustments in consumption patterns across various sectors. In essence, while prices may rise temporarily, the broader economic landscape suffers, resulting in a ripple effect felt globally.