David Kelly of Morgan Asset Management said President-elect Donald Trump's aggressive tariff plan could drag down the global economy and put upward pressure on US inflation.
“Initial smoke signals suggest that tariff measures will be very aggressive,” Kelly, the company's chief global market strategist, said Wednesday. “Competing tariffs will make the whole world poorer,” he added.
During his campaign, Trump dismissed concerns that tariffs would damage the US economy, saying tariffs were the “most beautiful word” in the dictionary.
Lighthizer, who served as the US Trade Representative during Trump's first term, recently wrote an article in the Financial Times advocating protectionist policies.
“There will be a lot of conflict over tariffs,” Kelly said on Wednesday. “If you punch someone in the nose, they'll fight back. That's why it's called a tariff war.”