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 domestic manufacturing, reduce the trade deficit, and increase state revenue.
Economic Results:
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 suffer.
Markets and Inflation: Initial negative reaction from the markets, followed by slight improvement. Inflation remained low due to companies stockpiling goods.
Agriculture: Concern among farmers about losing markets, despite the temporary truce.