The Trump administration's promise of steel and aluminum tariffs has ignited investor concerns over a trade fight, strategist Mona Mahajan told CNBC on Thursday.
"One of the things that a trade war could bring on is rising inflation," she said in an interview with "Power Lunch."
President Donald Trump said Thursday that the U.S. will impose tariffs of 25 percent for steel and 10 percent for aluminum. It is unclear whether the tariffs will apply to all imports or only metals from certain countries.
"When you don't have competition out there, you're going to naturally see rising prices," added Mahajan, U.S. investment strategist at Allianz Global Investors.
She said that the combination of fiscal stimulus, inflation and global growth are driving the Fed's rate hike schedule in 2018. Potential trade fights only cemented that outlook.
"Maybe we're looking at four rate hikes," said Mahajan.