Tue Apr 29 13:00:00 UTC 2025: ## Trump’s Trade Wars Risk Triggering Decade-Long Stagflation, Experts Warn

**Washington, D.C. -** A chilling parallel to the stagflation of the 1970s is emerging, according to leading economists, as President Trump’s trade policies threaten to plunge the US into a prolonged period of economic stagnation and high inflation.

The warning comes amidst growing concerns over recessionary signals from the stock market and inflationary pressures indicated by bond markets. This simultaneous occurrence of stagnation and inflation, reminiscent of the 1970s, is a scenario experts fear could last for years.

Trump’s tariffs, likened to “a hundred self-inflicted oil shocks,” are driving up prices across the board, affecting everything from groceries to automobiles. While the administration promises a resurgence of American industry, economists argue this is unlikely. Tariff-protected industries often produce inferior goods at inflated prices, lacking the incentive to improve. Furthermore, the uncertainty surrounding the tariffs’ longevity discourages investment in domestic manufacturing.

The potential consequences are dire. Businesses face decreased demand and layoffs, while consumers grapple with higher prices and potential shortages. The author warns that even if Trump were to reverse course, the damage would likely persist for years, as the disruption of global trade networks takes a long time to repair.

Adding to the crisis, Trump’s actions may push him towards increased government intervention, including subsidies, tariff exemptions, and potentially even capital controls – measures that further destabilize the economy and erode investor confidence. History shows that attempts to control inflation and stagnation simultaneously often fail, leading to a vicious cycle of economic mismanagement.

The article concludes that overcoming this self-inflicted economic crisis will require a significant effort and a substantial period of time. Restoring global trust in the US economy will be key to recovery, a process that could take many years, given Trump’s history of operating in bad faith. The economic fallout from the Trump administration’s trade policies could become one of the defining economic challenges of the next decade.

Read More