**Experts Warn Trump's Economic Policies Could Fuel Inflation and Raise Prices**

President-elect Donald Trump has been swept back into office by voters dissatisfied with the state of the U.S. economy. Preliminary results of an ABC News exit poll reveal more than two-thirds of voters perceive the economy as being in bad shape. Additionally, 45% of voters report their financial situation is worse now than it was four years ago, exceeding the sentiment during the Great Recession's immediate aftermath in 2008.

Despite their economic frustrations, voters have chosen a candidate whose proposed policies are anticipated to worsen inflation and strain household budgets further, experts conveyed to ABC News. Trump's plans for intensified tariffs and mass deportation of undocumented immigrants are expected to drive up prices for a wide array of goods, including essentials like coffee and bananas, and technology like smartphones.

Robert Lawrence, a professor at Harvard University's Kennedy School of Government, suggested that Trump's policies might exacerbate inflation rather than alleviate it. On the campaign trail, Trump advocated for a significant increase in tariffs up to 100% on Chinese goods and a tax ranging from 10% to 20% on imports from U.S. trading partners. Economists predict that these tariffs would lead to price hikes at retail due to importers passing the cost of higher taxes onto consumers. According to the Peterson Institute for International Economics, such tariffs could cost the average U.S. household roughly $2,600 per year.

Douglas Irwin, an economics professor at Dartmouth College, emphasized that consumers would noticeably feel the impact of these price increases in their daily expenses, such as their morning coffee. Furthermore, Trump has vowed to undertake the largest deportation of undocumented immigrants in U.S. history, which could significantly alter the nation's workforce by removing millions of workers.

Given the current historically low unemployment rate, experts believe this could result in a workforce shortage. Employers might be compelled to raise wages for remaining workers, translating to higher consumer prices, explained American University economist Kara Reynolds. Despite a significant cooling of inflation from a 9% peak in 2022 to near the Federal Reserve's target rate of 2%, the rise in prices during the pandemic era continues to strain consumers, with grocery bills remaining 20% higher since President Joe Biden took office.

During his campaign, Trump often dismissed concerns over potential price hikes by pointing to the low inflation rates during his first term despite implementing tariffs. However, experts argue that while inflation was low in Trump's initial term, evidence of tariff-related price increases existed. For instance, a 2018 tariff on washing machines led to a 12% price hike for these appliances, according to a 2019 study.

Irwin noted that while the selected tariffs from Trump's first term had limited impact, an extensive application this time around could lead to substantial price surges. Nonetheless, there remains uncertainty about potential exemptions that might mitigate some of these effects.