Economist's executive editor: U.S. tariff policy seen as aggressive or unpredictable

Charlotte Howard, executive editor and New York bureau chief for The Economist, shared her views on a new inflation report that outlines the potential consequences of the United States' tariff policy. Speaking on a recent program, she noted that among U.S. allies, the current approach to tariffs is increasingly perceived as either a form of aggressive leverage – using duties as a tool to extract economic or strategic concessions – or as a sign of erratic policymaking.

She pointed out that if a proposed 30 percent tariff on imports from the European Union, America's largest trading partner, takes effect by August 1, and the EU imposes retaliatory tariffs, it could deal a significant blow to the economy. While inflation remains relatively mild for now, thanks to companies' effective supply chain management and stockpiling in advance, these buffers are temporary, she warned, and noted that as investment cools down and corporate uncertainty rises, the risk of deeper economic fallout may be on the horizon.