#TrumpTariffs Trump’s Tariff Gamble: A Double-Edged Sword for the U.S. Economy

In April 2025, President Donald Trump unveiled a sweeping tariff policy dubbed “Liberation Day,” marking the most extensive trade intervention in modern American history. This initiative introduced a 10% baseline tariff on most imports, with additional country-specific levies reaching up to 60% on goods from China. The administration's goal was to bolster domestic manufacturing, particularly in high-tech sectors and military equipment, while reducing reliance on foreign imports. However, the policy's implementation has sparked significant economic and political debates.PIIE+2Medium+2The Times+2The Times of India

Economic Fallout: Inflation, Market Turmoil, and Consumer Impact

The immediate economic repercussions have been profound. Economists estimate that the new tariffs could cost the average U.S. household over $2,600 annually, with potential increases in consumer goods prices, including electronics and vehicles . Financial markets have reacted negatively, with major indices experiencing significant declines. For instance, the S&P 500 entered bear market territory in less than seven weeks following the announcement