Economist Warns of Economic Risks from Trump's Tariffs and Immigration Policies

Mark Zandi of Moody's Analytics predicts potential economic challenges in 2025 if President-elect Trump enacts key campaign promises.

Mark Zandi, chief economist at Moody's Analytics, highlighted potential risks to the U.S. economy from proposed tariffs and mass deportations under the Trump administration.
Trump's proposed tariffs, ranging from 10% to 25% on imports, could significantly increase consumer prices on goods like clothing, electronics, and household items.
Analysts predict price hikes in key retail categories, with clothing costs potentially rising by up to 20.6%, disproportionately impacting low-income households.
Mass deportations of undocumented immigrants could reduce GDP by up to 6.8% over four years, according to a Congressional Joint Economic Committee study.
While the economy is currently strong, with steady GDP growth and a robust labor market, Zandi cautioned that these policies could lead to higher unemployment and economic instability.