Adriana Kugler, head of the Federal Reserve System, expressed the opinion that the tariff policy pursued by the Donald Trump administration is likely to contribute to higher inflation. In addition, it may negatively affect the pace of economic growth, despite recent steps aimed at easing duties on China. Kugler stressed that trade policy continues to evolve actively and is likely to undergo further changes. She noted that even if tariffs remain at the current level, this will create a noticeable impact on the economy. Earlier, the United States and China announced a temporary reduction in duties on each other's goods to allow negotiations on a larger trade agreement. According to these agreements, US tariffs on Chinese products will be reduced to 30% from the initial 145%, while Chinese duties on US goods will be reduced to 10% from 125%. Despite such changes, Kugler noted that the average level of tariff rates in the United States remains significantly higher compared to the figures that have been observed for many decades.
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