Trump’s policies may raise inflation and deficits more than Harris’s

Economists predict that inflation and federal deficits will increase if former President Donald Trump returns to office, compared to Vice President Kamala Harris.

Key Findings: A recent survey from Oct. 4-8 shows that 68% of economists believe inflation will rise faster under Trump, up from 56% in July. Just 12% expect higher inflation with Harris, and the rest see no major difference.

Dan Hamilton, from California Lutheran University, emphasized that Trump’s tariff plans contribute to these predictions, stating he is more anti-free-trade than Harris.

Trump proposes tariffs of 10% to 20% on imports and over 60% on Chinese goods, which economists warn could raise consumer prices. Philip Marey from Rabobank noted the potential negative impact of these tariffs.

Additionally, 65% of economists expect Trump’s policies to worsen the federal deficit, up from 51% in July. Estimates suggest his plans could increase deficits by $7.5 trillion over ten years, more than double Harris’s expected impact.

Importance: Trump’s economic focus includes lowering energy costs to manage inflation. In a chat with financial expert Dave Ramsey, he discussed how reducing energy prices could help ease economic stress.

However, his proposals for tax cuts and tariffs raise concerns about possible inflation increases. At a New York Economic Club event, Trump prioritized expected tariff revenue over childcare costs.

Scott Bessent, a Trump economic adviser, assured that a Trump administration would support a strong dollar, countering earlier claims of aiming for a weaker dollar to boost exports.

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Photo via Shutterstock.

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari