### Trump’s Tariffs Threaten Global Trade and the US Economy
The Trump administration’s newly announced global tariffs have drawn sharp criticism for their economic illogic and potential to harm both American consumers and international trade relations. Unlike targeted trade measures, these broad tariffs—set at a minimum of 10%—apply universally, making it difficult for businesses to circumvent them by shifting supply chains. Economists warn that these taxes will raise prices on everyday goods, from groceries to electronics, while failing to boost domestic manufacturing as intended. Worse, the tariffs could trigger retaliatory measures from trading partners, further straining the US economy. Even if the tariffs are abandoned before implementation, the uncertainty they create has already rattled markets and eroded global confidence in US economic policy.
### Economic Fallout: Higher Prices, Stagnant Wages, and Recession Risks
The immediate impact of these tariffs will be higher costs for businesses and consumers, with companies likely passing expenses onto buyers—particularly low-income households. Unlike pandemic-era inflation, where rising prices sometimes led to wage growth, tariffs redirect money to the government rather than workers, leaving Americans poorer. Consumer confidence, already at decade lows due to economic instability, could plummet further, increasing the risk of recession. Major financial institutions, including JPMorgan and Goldman Sachs, have raised recession probability estimates, citing the tariffs’ disruptive potential. Additionally, the policy’s erratic nature discourages long-term corporate investment in US manufacturing, undermining Trump’s stated goal of reviving domestic industry.
### Political Chaos and Global Distrust
Beyond economics, the tariffs reflect the Trump administration’s chaotic governance, with Treasury Secretary Scott Bessent admitting he was excluded from key negotiations. The lack of transparency fuels suspicions that exemptions will be granted based on political favoritism rather than economic rationale. Historically, such protectionist measures—like the Smoot-Hawley tariffs of 1930—have worsened economic downturns. The current approach risks weakening the US dollar’s global reserve status, as allies and adversaries alike impose counter-tariffs. Combined with previous destabilizing policies, including erratic cryptocurrency moves and attacks on immigration-driven innovation, these tariffs further isolate the US economically and politically. The world is now bracing for the fallout of what many see as a self-inflicted crisis.
Ez a cikk a Neural News AI (V1) verziójával készült.
Forrás: https://www.theverge.com/business/643970/trade-war-consequences-crazy.