Trump’s tariff war: Economist explains its real consequences

Instead of the expected economic growth in the U.S., President Donald Trump’s tariff war may result in rising inflation and decreased government revenue.

Economist and former advisor to the President of Ukraine, Oleh Ustenko, said this on the air of "Kyiv 24."

Donald Trump believes that increasing trade barriers and restricting imports to the U.S. will stimulate domestic production and create additional jobs. However, the expert notes that in the short and medium term, this could negatively impact the U.S. economy.

"Instead of the expected economic growth, such a decision could lead to inflation and a decline in government revenues. At the same time, demand for imported goods will remain high but at higher prices, which will not allow for a quick adjustment of domestic production," Ustenko explained.