Insights丨Fmr. World Bank VP warns U.S. "reciprocal tariffs" may trigger inflation and growth deceleration

During an exclusive interview with China News Network, Otaviano Canuto, Senior fellow at the Policy Center for the New South and former vice president and executive director at the World Bank, noted that there will be price hikes due to U.S.’ arbitrary "reciprocal tariffs" policy, with lower tiers of the income pyramid suffering the most.

In addition, Canuto added that inflation and growth deceleration tend to be the immediate impact of the reciprocal tariffs. Now, average annualized growth is projected to step down from 2.5 percent in 2024 to just 0.1 percent in 2025. (Chen Tianhao)