President Trump claims that his sweeping tariffs on imports from around the world are making America great and rich again. However, the reality is proving to be different.
The US economy is starting to feel the effects of Trump’s tariffs, with inflation picking up and the labor market showing signs of cooling. The Labor Department reported only 73,000 jobs were added in July, fewer than expected. Additionally, the US gross domestic product grew slower in the first half of this year compared to previous years.
Experts say that tariffs will likely be split among exporters, importers, and American consumers, with estimated costs ranging from $2,400 per household this year. The economy is expected to get weaker, leading to higher inflation and slower job growth.
While the US raises money from tariffs, the country’s heavy debt load may offset the gains. Trump’s tax cuts and spending bill are projected to increase the national debt by $2.4 trillion.
The global economy is entering uncharted waters as countries around the world face uncertainty due to Trump’s tariffs. The International Monetary Fund estimates the global economy will grow 3.0% this year, down from 3.3% last year. Countries may shift their exports to other markets, leading to unpredictable consequences.
Analysts warn that Trump’s tariff tactics could erode trust and goodwill between countries, ultimately being detrimental for the US in the long run. The “sticks-only” approach to trade relations, as predicted by Alicia Garcia-Herrero, an Asia-Pacific chief economist, may lead to payback from other nations.
Source: https://www.npr.org/2025/08/04/nx-s1-5487592/global-economy-tariffs-inflation-prices