Nathan Posner \/ Shutterstock.com <\/p>\n
The U.S. economy has been sending mixed messages this year. Among the bright spots \u2014 including better-than-expected GDP growth and record stock market highs \u2014 there have also been areas of concern, such as weak jobs reports and rising inflation.<\/p>\n
Meanwhile, President Donald Trump\u2019s tariffs<\/a> have created uneasiness over their potential impact on everything from consumer prices and GDP growth to the labor market.<\/p>\n Read Next: I Asked ChatGPT What the Point of Trump\u2019s Tariffs Are: Here\u2019s What It Said<\/a><\/p>\n Find Out: 10 Used Cars That Will Last Longer Than the Average New Vehicle<\/a><\/p>\n GOBankingRates asked ChatGPT how the Trump tariffs could affect the economy. Here\u2019s what it said<\/a>.<\/p>\n ChatGPT cited a report from Yale University\u2019s Budget Lab<\/a> estimating that tariffs could lead to a GDP growth decline<\/a> of about 0.9 percentage points in 2025, with \u201clingering long-term effects\u201d that could reduce annual real GDP by roughly 0.6%.<\/p>\n ChatGPT also cited a Penn Wharton Budget Model<\/a> that projected a \u201clong-run GDP drop\u201d of about 6%, along with wage reductions of roughly 5%.<\/p>\n Explore More: Mark Cuban: Trump\u2019s Tariffs Will Affect This Class of People the Most<\/a><\/p>\n ChatGPT referenced a recent Congressional Budget Office report, cited by Reuters<\/a>, projecting that tariffs will raise inflation<\/a> by about 0.4 percentage points in both 2025 and 2026, which in turn would reduce household and business purchasing power.<\/p>\n Tariffs \u201cfunction like taxes,\u201d according to ChatGPT, leading to higher business costs that are typically passed on to consumers<\/p>\n