Should the president hold fast to his tougher-than-expected trade policy, there's a material risk of at least near-term costs.

Key Takeaways Economists say President Donald Trump's Wednesday announcement of broad-based tariffs on trading partners worldwide will likely push up inflation and increase the chances of a recession.

President Donald Trump’s new tariffs create a dilemma for the Federal Reserve because they’re likely to both increase inflation and slow economic growth — and possibly lead to stagflation.