#TrumpTariffs
President Trump imposed a 10% tariff on all imports, raising it to 60% on Chinese imports, before temporarily reducing it to 30% after a truce.
Objective: Support local manufacturing, reduce the trade deficit, and increase state revenues.
Economic outcomes:
Expected decline in GDP by 6% and wages by 5%.
Increase in commodity prices by 2.3%, costing the American family $3,800 annually.
Manufacturing may improve, but agriculture and construction may be harmed.
Markets and inflation: Initial negative reaction from the markets, then slight improvement. Inflation remained low due to companies stockpiling goods.
Agriculture: Concerns among farmers about losing markets, despite the temporary truce.
Legal aspect: California seeks to legally stop the tariffs.
Future: Division between recession expectations and optimism for technology-driven growth.