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2025-05-06 — cnn.com
Smetters, who runs the Penn Wharton Budget Model, noted that capital was indeed leaving the United States and rates were rising before Trump announced his pause on reciprocal tariffs.
“If the tariffs are fully implemented, the US will need to sell its future debt… at lower prices and higher yields,” Smetters said. “More tax cuts, instead of helping offset some of the negative effects of tariffs, will add to the debt at a time when it will become more costly to do so.”
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