#TrumpTariffs have had significant economic impacts since their implementation. President Trump imposed a baseline 10% tariff on nearly all imports, with higher tariffs (up to 145%) on goods from China and other countries. These tariffs have caused American businesses to cancel orders, delay expansion, and brace for economic uncertainty, leading to slower GDP growth and increased inflation risks.
Economically, Trump's tariffs are projected to reduce long-run U.S. GDP by about 6% and wages by 5%, with middle-income households facing substantial lifetime losses. The tariffs raise substantial federal revenue (over $5 trillion in 10 years) but at the cost of decreased consumption, investment, and capital stock, ultimately lowering worker productivity and output. The tariffs also contribute to higher prices for consumers and potential increases in unemployment later in the year.
