#TrumpVsPowell Trump, Powell & the Tariff Trap: What CRE Investors Should Know

Former President Donald Trump is back in the headlines with talk of steep tariffs — a key part of his potential second-term agenda. If re-elected, Trump has floated imposing tariffs of 60% or more on Chinese goods and 10% across the board on all imports. While such moves may be politically popular in some circles, they could trigger a serious economic chain reaction — especially for interest rate-sensitive sectors like commercial real estate.

The Wall Street Journal editorial board warns that new tariffs would effectively act as a tax on consumers, driving prices higher at a time when inflation has already proven stubborn. In that scenario, the Federal Reserve would likely have no choice but to keep interest rates higher for longer to fight renewed inflation pressures.