As the US election looms, economists are warning that the policies of both Kamala Harris and Donald Trump could increase inflation, with their concern greatest about the Republican candidate’s economic plans.

According to economic analysts, Trump’s proposals include high import tariffs, restrictions on immigration and pressure on the Federal Reserve to cut interest rates. Experts are concerned that these Trump policies could increase inflation and create new challenges for the economy.

Although both candidates propose policies to stimulate growth, Trump’s plans, US media report, present a number of risks given the current economic conditions. Inflation has fallen recently, reaching 2.4% in September, thanks to higher interest rates, improvements in supply chains and labor growth.

Economists now worry that Trump’s policies could reverse that trend, triggering a second wave of inflation. Brian Riddle, former counsel in the Senate and now at the Manhattan Institute, commented: “Taken together, these factors point in a direction of increasing inflation. I am really concerned that the inflation picture will worsen in 2025».

Economists point to several key aspects of Trump’s economic agenda as potential causes of rising inflation. One of the most controversial measures is his proposal to impose 10% tariffs on all imports, as well as higher tariffs on Chinese imports, possibly reaching 60%. AutoZone CEO Philip Daniele told the WSJ that “companies will pass the cost of the tariffs on to consumers, thereby raising prices».

Trump’s tougher immigration policies, aimed at reducing foreign workers, also worry economists. According to a study by the Peterson Institute for International Economics: “Mass deportations would reduce economic output and increase inflation. With fewer workers in the labor market, companies will likely face increased labor costs, which could raise the prices of goods and services».

Another factor of concern is Trump’s potential influence on Federal Reserve policy. During his first term, Trump pressured the Federal Reserve to cut interest rates, and experts predict he will follow a similar tactic if re-elected.

Harris’s proposed policies seem less risky than Trump’s. Her approach includes promoting housing construction, lowering the cost of living and tax cuts for households. Harris has pledged that her new spending will be financed by new taxes or other revenue sources, which could curb inflation.

But the deficit estimators add a troubling factor. Analysts from the Committee on Federal Budget Management estimate that Harris’ policies will increase the deficit by about 3.5 trillion. dollars over the next decade, while Trump’s proposals will increase it by 7.5 trillion. dollars. The increased deficit could, they say, pressure the bond market and likely lead to higher interest rates, adding further pressure to the US economy.

Some economists fear that if Trump’s policies create new inflationary pressures, the bond market could react negatively, demanding higher yields for holding Treasury securities.