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Analysts: Trump may boost the US economy through tariff cuts and a wave of tax refunds.

Ed Yardeni, President of Yardeni Research, predicts that Trump will turn tariffs from barriers into bargaining chips, promoting strong growth of over 3% in the US economy through tariff reductions combined with a wave of tax rebates. Price pressures will act as a catalyst, forcing the Trump administration to shift from protectionism to trade easing, using the 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 by cutting tariffs. Treasury Secretary Mnuchin has also hinted that the effectiveness of tariffs is weakening. Additionally, Yardeni warns that if a major geopolitical shock occurs (such as a deterioration in the European situation), all economic forecasts will become invalid. 

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