Nobel Economist Warns Trump Policies Could Trigger Stagflation

Joseph Stiglitz highlights trade uncertainty, rising tariffs, and investor concerns as factors threatening U.S. economic stability.

Joseph Stiglitz, a Nobel Prize-winning economist, cautions that President Trump's trade and economic policies risk causing stagflation—high inflation, stagnant growth, and rising unemployment.
Stiglitz criticizes the unpredictability of tariffs and trade agreements, which he says create uncertainty for corporations and deter global investment in the U.S.
Recent tariff announcements include 25% levies on Canada and Mexico, though these have been temporarily paused, and new reciprocal tariffs targeting other countries individually.
Economists broadly agree that Trump's tariffs will increase prices, with limited currency exchange rate adjustments to offset the impact, fueling inflation concerns.
Stiglitz describes the U.S. as a 'scary place to invest' due to policy unpredictability, abandoned government contracts, and potential long-term harm to the global economy.