Some economists are cautioning that President Trump's sweeping new tariffs on U.S. trade partners, which took effect Thursday, increase the risks that the U.S. economy could enter a period of stagflation.

A mashup of "stagnation" and "inflation," the term describes periods marked by high prices and low GDP growth, such as the economic doldrums of the 1970s. To be sure, U.S. economic growth, though slower so far this year than in 2024, remains relatively strong, and inflation remains far below its post-pandemic spike.

But economists are flagging the potential for fresh tariffs, which took effect Aug. 7 ,to fuel higher prices as businesses pass on the costs of the new import duties to consumers. With the latest round of import duties, the effective average tariff rate now stands

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