The Real Cost of Trade Wars: Trump’s Tariffs 2025

Written by Michelle Selina

The global economy is bracing for another wave of trade tensions as former U.S. President Donald Trump, now back in office, reinstates aggressive tariffs on imports from China, Mexico, Canada, and the European Union. As of April 2025, the U.S. has imposed 25% tariffs on steel and aluminum, along with over 100% duties on select Chinese goods, including electric vehicles (EVs) and semiconductors. These measures have triggered retaliatory actions from trading partners, raising fears of inflation, supply chain disruptions, and slower economic growth worldwide.

Experts warn that U.S. consumers could lose up to $78 billion annually due to higher prices, with low-income households bearing the brunt. Meanwhile, businesses, especially retailers and manufacturers, face rising costs, stock market volatility, and weakened currency exchange rates.

What Are Trump’s Tariffs

Trump’s tariffs are taxes on imported goods designed to protect U.S. industries and force trade concessions from other nations.

How Do Tariffs Hurt Consumers, Businesses, and the Stock Market?

Tariffs create a ripple effect across the economy, impacting consumers, businesses, and financial markets. For consumers, import taxes translate into higher retail prices on everyday goods from electronics to clothing, reducing purchasing power, especially for low-income households. Businesses, particularly small and medium-sized enterprises (SMEs) that rely on imported materials, face shrinking profit margins as production costs rise, forcing some to cut jobs or raise prices.

Meanwhile, stock markets react sharply to trade uncertainty, with investor panic triggering sudden dips in share prices, particularly in industries like automotive, tech, and retail. Additionally, prolonged tariff wars can weaken currencies, including the U.S. dollar, as trade imbalances grow, and foreign investors lose confidence. The combined effect? A slower economy, higher inflation, and greater financial instability.

What Happens if Tariffs Continue to Escalate?

If more countries join this strategy:

  • Trade flows could shrink
  • Global GDP could slow down
  • Consumer goods may become unaffordable
  • Unemployment could rise in export-heavy economies

This would lead to a fragmented global economy, where alliances are formed not on efficiency or innovation but on who can withstand tariff pressure the longest.

Trump’s Tariffs: Expectations vs. Reality – What Should People Do?

Trump’s tariffs aim to revive U.S. manufacturing and shrink trade deficits, but history shows mixed results. While past tariffs (2018-2020) did bring back some steel and auto jobs, they also led to higher consumer prices and hurt U.S. farmers who lost key export markets. Fast forward to 2025, and the same risks remain, tariffs may help certain industries but could trigger inflation, supply chain disruptions, and slower economic growth overall.

While tariffs may offer short-term protection for some industries, the broader risks mean that preparation and adaptability are key.

Conclusion

While the goal of protecting domestic industries may sound ideal, the current implementation of high tariffs is causing widespread economic disruption. From rising consumer costs and inflation to retaliatory actions and global uncertainty, the true price of these tariffs may be far greater than expected. If global cooperation fades, the economy could face long-term setbacks far more damaging than trade imbalances.

Reference

Faithfull M. https://www.forbes.com/sites/markfaithfull/2025/03/04/as-trade-tariffs-come-into-force-how-they-will-impact-retail-prices/

Mangan Dan, et al. https://www.cnbc.com/2025/04/10/china-trump-tariffs-live-updates.html

Yahoo Finance, https://finance.yahoo.com/news/live/trump-tariffs-live-updates-us-china-trade-war-reality-sets-in-amid-wider-reciprocal-pause-191201296.html

Sor J. https://www.businessinsider.com/trump-tariffs-stock-market-crash-correction-trade-war-goldman-sachs-2025-4

留言

張貼留言

這個網誌中的熱門文章

A Rising Scam: ATM Glitch Fraud

圖片
Written by Michelle Selina JPMorgan Chase, the largest bank in the U.S. by assets, has initiated lawsuits against customers who allegedly exploited a technical “infinite money glitch” to fraudulently withdraw funds from ATMs. The scam, fueled by viral videos on social media platforms like TikTok, encouraged people to deposit large, sometimes falsified checks, and then withdraw cash before the funds were verified. This scheme not only raises concerns about ATM security but also about the role social media can play in amplifying fraudulent activities. The Details The "infinite money glitch" scheme gained widespread attention on TikTok and other platforms, as people shared “tutorials” on how to exploit ATM systems. The basic method involved users writing themselves large checks, often in tens or hundreds of thousands of dollars, depositing them via ATMs or mobile banking apps, and then making multiple withdrawals before the checks cleared. In some cases, customers reported...
閱讀完整內容

The Rise and Fall of Forever 21

圖片
  Written by Michelle Selina Forever 21, once a global fashion powerhouse, is facing its third bankruptcy, signaling a turbulent phase for the fast-fashion giant. Known for its trendy, affordable clothing, Forever 21 expanded rapidly, opening stores worldwide and becoming a favorite among millennials and early Gen-Z shoppers. However, the brand has struggled to adapt to changing consumer behaviors and market dynamics, leading to repeated financial crises. With its latest bankruptcy filing, Forever 21 plans to close all U.S. stores, including five in Colorado, while its international stores remain operational. What led to this downfall, and what’s next for the iconic retailer? The Rise and Fall of Forever 21 Forever 21 was founded in 1984 by Do Won Chang and Jin Sook Chang in Los Angeles. The brand quickly gained popularity for its affordable, on-trend fashion, appealing to young shoppers. At its peak, Forever 21 operated over 800 stores globally, becoming a staple in malls worl...
閱讀完整內容

Introducing MA's Cash Handling Solutions for Toll Stations and Deposit Centers

圖片
    The Challenge In Austria, vehicles have a vignette to use the highway, and there are only a few toll stations where drivers can compensate for the expensive traffic infrastructure. Previously, toll station operators needed to collect cash payments at least once per day, sometimes more frequently. Heavy cash businesses also had to employ their own personnel to collect cash from their branches and deposit it at the bank, which posed security risks. Moreover, these businesses could only deposit their cash during the bank's opening hours, using the bank's cash recycler. However, these recyclers were primarily balanced between cash-in and cash-out to be profitable for the bank, and the deposit process took a significant amount of time.   The Solution MA has introduced high-volume deposit machines for notes and coins, which can save cashiers over an hour every day in making their end-of-shift balances easily. Additionally, the collection cycle can now be extended to 2-3 day...
閱讀完整內容