President Donald Trump has started implementing massive tariffs on foreign goods, sparking concerns among economists and businesses about the potential impact on U.S. consumers.
The new tariffs, which range from 18.6% to 50%, are expected to be passed on to consumers through higher prices. The Yale Budget Lab estimates that the average tax rate on imports will increase to its highest level since 1933.
Tech giants such as Apple have announced plans to set up domestic production facilities to avoid the tariffs, with some companies even investing $100 billion in U.S. production. However, many economists believe that these efforts may not be enough to mitigate the impact of the tariffs.
Businesses like Nike and Procter & Gamble have already raised retail prices to compensate for their rising tariff bill. The fast-changing nature of Trump’s trade offensive has made it hard for companies to keep pace, with some even shifting production back to countries with lower tariffs.
The U.S. economy remains in a holding pattern, with soft hiring numbers and hesitant consumer spending. As the situation evolves, economists warn that the impact of the tariffs could be significant, potentially leading to a decline in economic growth and strain on certain alliances.
Trump has asserted unprecedented economic emergency powers to impose the tariffs, but many question whether he overstepped his authority. The administration is appealing a trade court ruling that found Trump’s actions were unlawful, which could still have far-reaching consequences for the U.S. economy.
Source: https://www.washingtonpost.com/business/2025/08/07/trump-tariffs-global-trade