Veronica Parellada Eller, the head of Florida-based investment advisory firm My Investment Path, told China Global Television Network (CGTN) that the Trump administration's sweeping tariffs could harm the U.S. economy, and said she hopes that the U.S. and China could negotiate a trade agreement.
She warned that if Trump's tariffs are implemented, they will cause upward pressure on domestic prices and inevitably produce inflation and persistently high interest rates.
"So in the U.S. economy, shortly we're going to have inflation, because retail and furniture and clothing are directly impacted, very known brands as Shein and Temu like there are a lot of people buying from there. And then we have retailers such as Walmart, that are importers also from China. And also we've seen the impact already in the financial markets which has been very bad and harmful. All these uncertainty going forward for the technology sectors," she said.
Eller also highlighted the volatility in U.S. stock markets, which has wiped out a whole year's gains in the S&P 500, and rising input costs for a broad range of U.S. industries.
"And then we have indirect impacts like the financial costs for companies and investments which they're going to pay a toll like the market is just frozen to see what's going on and what's going to happen. And we're looking also to the Fed to see what its going to do and some of it depends on how this is going to end and if there's going to be an agreement or this is going to stand there. So all these uncertainties are not good for financial markets either for investments in the U.S. and also for the dollar currency," she said.
She said the devaluation of the dollar can potentially benefit U.S. exports but, in the long term, uncertainty is not good for the economy, and she held out hope for a negotiated trade agreement between the Chinese and American governments to avoid further turmoil in global trade.
U.S. investment adviser says U.S. tariffs will drive inflation, damage economy
