Analyst: Trump may drive strong growth in the US economy through tariff reductions and a wave of tax rebates

On January 2nd, Yardeni Research President Ed Yardeni predicted that Trump will turn tariffs from barriers into bargaining chips, using a combination of tariff reductions and tax rebates to drive the US economy to achieve strong growth of over 3%. Price pressures will serve as a catalyst, forcing the Trump administration to shift from protectionism to trade easing, leveraging negotiated bargaining chips to lower tariffs. The strategic goal has been achieved, and the White House is now in a position to ease inflationary pressures through tariff reductions. Treasury Secretary Bessent also hinted that the effectiveness of tariffs is waning. Additionally, Yardeni warned that if a major geopolitical shock occurs (such as worsening European situations), all economic forecasts will become invalid. (Jin10)