- BOA highlights tariffs’ effect on inflation and auto sales.
- Inflation may increase by 0.25%, says Moynihan.
- 2025 GDP growth forecast reduced to 2.4%.
Current U.S. tariffs could lead to higher prices and slowed economic activity, affecting market sectors like automotive, according to Bank of America’s analysis.
Bank of America estimates that new tariffs on imports will increase car prices and reduce vehicle sales. CEO Brian Moynihan stresses these changes might add 0.25% to U.S. inflation.
“I think the concept wasn’t a surprise. It was in the campaign, it’s been talked about, but the reality is now coming, and so people are starting to make adjustments and trying to figure out what it all means. Bank of America analysts think the new tariff will cause car prices to go up and purchase of vehicles to slow down, that’s what you’re seeing reflected in the market.” – Brian Moynihan, Chairman & CEO, Bank of America.
Financial impacts include increased consumer prices and slower economic growth, affecting international trade partners and potentially altering inflation rates.
The financial and technological landscape may not show immediate digital asset impacts, according to current on-chain data. Historical analysis suggests potential adjustments as trade patterns stabilize.
No primary data confirms direct effects on cryptocurrency markets. BOA indicates resilience, noting consumer spending remains robust despite these tariffs. The broader financial sectors show adaptability amid evolving trade dynamics.
