#TrumpTariffs

Imposing wide-ranging tariffs, which led to escalating trade tensions with China. Tariffs on Chinese imports peaked at 145%, before being temporarily reduced to 30% under a 90-day truce agreement, where China similarly lowered its tariffs to 10%.

Despite these measures, the U.S. inflation rate slowed to 2.3% in April, the lowest level in four years, due to pre-stocked imported goods. However, experts expect prices to rise as these stocks run out, which could lead to increased inflation in the summer.

Estimates from the Penn Wharton Budget Model suggest that these tariffs could reduce U.S. GDP by 6% in the long term and lead to a 5% decline in wages, translating to a loss of $22,000 for the average middle-income household over a lifetime.

At the same time, India has benefited from these tensions, as American companies like Apple have shifted part of their production there, bolstering India's ambitions to become a global industrial hub.

While markets have eased recession fears, economic challenges remain due to persistently high tariffs and supply chain disruptions.