“Inflation and Recession Ahead,” says Michael Gray, CPA

“Donald Trump seems determined to proceed with a 60% tariff on all imports from China and a 10% tariff for all other imports. His track record for his last term of office shows he is also serious about initiating the mass deportation of about 11 million undocumented immigrants,” says Michael Gray, a Certified Public Accountant with 46 years of experience analyzing economic trends.

Tariffs are taxes imposed by the federal government on importers, who increase their prices to pass the expense to their customers. Congress has delegated the authority to the President to impose tariffs without getting its approval.

According to Gray: “Other countries will probably impose tariffs on U.S. exports in retaliation to Trump’s tariffs. The resulting high prices for consumers in other countries will lead to a decline in U.S. exports.”

“The mass deportation will lead to labor shortages, increasing U.S. labor costs and lead to reduced food production, since undocumented immigrants harvest the majority of U.S. crops. The U.S. will be forced to import food, subject to the 10% tariff. The food shortages will also result in higher food prices and more inflation,” Gray continues.

The Federal Reserve will probably respond to higher inflation by raising interest rates.

In addition, the $256.8 billion spent in the U.S. economy by undocumented immigrants during 2022, representing about 4.2% - 6.8% of the U.S. gross domestic product, will disappear.

“We can look forward to high inflation and social and economic chaos during the Donald Trump’s second term as President,” Gray concludes.

Contact Information

Michael Gray

CPA

Michael Gray, CPA

mgray@taxtrimmers.com