The US economy is facing a perfect storm of inflation, uncertainty, and stagnation under President Trump’s tariffs. Despite efforts to mitigate their impact, the effects are now being felt across the country. The latest Producer Price Index (PPI) report shows a 3.7% year-over-year increase in core prices, with consumers bracing for higher costs.
Trump’s tariffs have led to a global trade slowdown, causing businesses to delay passing on costs to consumers. However, this temporary reprieve is coming to an end as companies burn through their pre-tariff inventory. Economists had warned about the negative impact of tariffs, and now it’s becoming apparent that Trump’s economic policies are inflating prices.
The White House has been slow to respond to concerns over the $100,000 expenditure policy at FEMA, which is causing delays in disaster response. Senators Patty Murray and Gary Peters have called for clarity on this policy, citing its “grossly misaligned” budgetary threshold with operational needs.
As Trump prepares to meet with Putin, experts are warning that his unpredictability could lead to a breakdown in talks. The joint press conference will likely be a non-event, with no specific plans announced. Instead, the focus will be on Trump’s image and potential concessions from Russia.
Meanwhile, companies are expected to raise prices as tariffs take hold, further exacerbating inflation concerns. The emerging centrally planned economy is already showing signs of stagflation, with layoffs and economic uncertainty on the rise. It’s clear that electing a serial bankrupter has had far-reaching consequences for America’s economy and politics.
Source: https://www.thebulwark.com/p/trump-tariff-pain-knocking-at-your-door