Citigroup: Suspending tariffs is difficult to solve, but the United States still faces economic slowdown and inflation

According to a report by Golden Finance, Citigroup economist Andrew Hollenhorst believes that the US suspension of so-called equivalent tariffs on most trading partners does not mean that the US economy has avoided slowing down and rising inflation. The 10% benchmark tariff that remains in effect during the 90 day suspension of equivalent tariffs, as well as industry-specific tariffs, still raises the effective tariff rate in the United States by approximately 21 percentage points compared to the level at the beginning of this year. The uncertainty of trade will continue to exist. Citigroup still expects the Federal Reserve to cut interest rates in May or June.