$TRUMP tariff plan could shake things up big time, and honestly, I think it could lead to higher inflation. When the U.S. taxes imports, everything from electronics to raw materials gets more expensive, and businesses aren’t just going to absorb those costs—they’ll pass them on to us. Less foreign competition also means local companies can charge more without worrying about cheaper alternatives. On top of that, if other countries hit back with their own tariffs, U.S. businesses could take a hit and raise prices even more. It’s a cycle that could get messy fast. So why is Trump doing this? The goal is to bring back jobs, reduce trade imbalances, and push for fairer deals, which sounds great in theory. But when you add in his push for lower interest rates, things get even more unpredictable. If inflation runs wild, the Fed might not cut rates as expected, and that could slow down markets. On the flip side, if things go Trump’s way, Bitcoin and risk assets could pump as a hedge against inflation and economic uncertainty. Either way, we’re in for some wild market moves—so buckle up! What do you think? Smart move or recipe for disaster? 👇

Trump imposing tariffs can lead to high inflation and let me explain why

1. Tariffs make things like electronics, clothes, or materials from other countries more expensive. If businesses rely on these imports, they raise their prices to cover the extra cost. If you're buying something at higher prices you will sell it for higher price right?

2. If imported materials (like steel or parts) are taxed, companies using them to make products (like cars or appliances) will charge more to cover the higher costs.

3. Tariffs protect local businesses from foreign competition. With less competition, local companies might raise prices because they don’t have to worry about cheaper foreign options.

4. If the U.S. taxes imports, other countries might tax U.S. exports in return. This hurts U.S. businesses, and they might raise prices to make up for lost sales.

5. Tariffs can mess up the flow of goods, making it harder and more expensive for businesses to get what they need. This can also push prices up.

6. If everyone thinks prices will go up because of tariffs, workers might ask for higher wages, and businesses might raise prices in advance, creating a cycle of inflation.

In short, tariffs make things more expensive, and those higher costs often get passed on to consumers, leading to inflation.

**Now you might be thinking if tariffs can do so much damage then why does Trump want to impose it? **

I think the main goal is to protect U.S. jobs, reduce trade imbalances, push for fairer trade deals, and strengthen domestic industries. He wants the US to produce more products.

He is also asking FED to cut interest rates. These things will have a direct impact on market. Lets see what we get, Crazy times Ahead in my opinion.