#TrumpTariffs • In June 2025, Trump imposed a 55% tariff on Chinese imports, which includes previous tariffs (10% base + 20% for fentanyl + 25%).

• He also announced possible increases in tariffs on cars and has already applied tariffs of 50% on steel and aluminum to incentivize domestic production.

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⚖️ Key Economic Impacts

1. Increase in production and consumption costs

• Large companies like Oxford Industries have cut their earnings guidance due to an additional $40 million in tariffs.

• Everyday products, from canned food to baby items, have seen price increases of 17–24%, acting as a “hidden tax” for families.

• The prices of phones and computers could also rise due to these tariffs.

2. Pressure on inflation

• Although overall inflation remained around 2.4% in May, there are signs of a rebound due to these tariffs.

• The CBO estimates that tariffs will add about +0.4 percentage points to annual inflation, counteracting possible rate cuts.

3. Economic growth slowdown

• The World Bank has cut its U.S. growth forecast to 1.4% in 2025 and warns of a global risk of economic stagnation.

• Models like Penn-Wharton project a GDP decline of ~6% and wages by ~5% in the long term.

4. Uneven sector reaction

• Some manufacturing plants in the Midwest, like Jergens Inc., have increased production and hiring (10–15%) due to domestic demand.

• But in other sectors, such as construction or automotive, input costs (steel, aluminum) have increased, slowing down investments.

5. Volatile financial markets

• Markets reacted negatively: the S&P 500 and Nasdaq fell several percentage points following the announcement of “Liberation Day” and the new global tariffs.