Trump's Tariffs: How Trade Wars Are Dragging Down the Global Economy
Yash Shah Yash Shah

Trump's Tariffs: How Trade Wars Are Dragging Down the Global Economy

President Donald Trump's unprecedented tariff policies in 2025 have triggered the most severe global trade disruption since the 1930s, with import duties soaring from 2.5% to as high as 145% on Chinese goods. This comprehensive analysis examines how these sweeping trade measures are dragging down global economic growth, sparking international retaliation, and threatening to push the world economy into recession. From automotive industry layoffs to consumer price inflation, discover the far-reaching impacts of America's new protectionist agenda and what it means for businesses, consumers, and the future of international trade.

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Economic Harm of Tariffs 
Yash Shah Yash Shah

Economic Harm of Tariffs 

Tariffs may sound like a quick fix for boosting domestic industry, but the long-term reality is far less rosy. Recent analyses from the Penn Wharton Budget Model and Yale’s Budget Lab reveal that tariffs could shrink the U.S. economy by up to 6%, with average households losing nearly $5,000 a year in purchasing power. These costs hit families where it hurts most—raising prices on essentials like food, clothing, and children’s products, and forcing many to tighten their budgets or delay major life decisions. Small businesses, meanwhile, are struggling to survive as input costs soar and supply chains fragment. As one CEO put it, “If this continues, we could witness a mass extinction of small businesses.” The evidence is clear: while tariffs may offer short-term political wins, they ultimately act as a hidden tax on American families and a drag on future prosperity.

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