Former U.S. President Donald Trump recently announced a new wave of high tariffs on many countries, and experts say this could seriously hurt both the U.S. and global economies. Some are calling his approach reckless and damaging.
Trump says he wants to bring back factory jobs to America. He points out that the number of manufacturing jobs has dropped from 19.5 million in 1979 to around 12.7 million today. While the goal sounds good, many economists believe the damage done by these tariffs will far outweigh the benefits.
The tariffs are very high — 50% on Lesotho, 49% on Cambodia, 46% on Vietnam, 34% on China, and others. These were not based on detailed studies but appear to be rushed decisions.
Economist Paul Krugman criticized the move, calling it the “whims of a mad king.” He said the logic behind the tariffs makes no sense, especially since Trump claims they won’t raise prices, but will still bring in billions in revenue.
Financial markets are already reacting negatively. Stock markets in the U.S. and around the world have lost trillions in value due to worries about Trump’s trade policies.
Mark Zandi, chief economist at Moody’s Analytics, warned that the U.S. could soon fall into a recession because of these tariffs. He predicts slower economic growth and a jump in the unemployment rate to 7.5%. Federal Reserve Chair Jerome Powell also warned that the tariffs could lead to higher inflation and slower growth.
Poorer countries like Lesotho, Bangladesh, and Cambodia may suffer the most. These nations depend on exports, especially clothing and textiles. Trump’s tariffs will likely lead to job losses and more poverty in those countries.
Critics say Trump’s tariffs are not targeted or thoughtful. Instead of helping specific struggling industries, they hurt many people — including American consumers and companies. For example, U.S. manufacturers that rely on imported steel and auto parts will now have to pay more, making their products more expensive and less competitive.
Some experts compare Trump’s actions to the Smoot-Hawley Tariffs of the 1930s, which made the Great Depression worse. They say that since the U.S. now relies more on imports, today’s tariffs could have an even bigger impact.
Even if Trump’s plan succeeds in creating some factory jobs, the cost will be high: a possible recession, higher prices for families (up to $3,800 more per year), and worse relations with U.S. allies. Other countries may also respond with their own tariffs, further hurting American businesses.
In short, while Trump wants to bring back factory jobs, experts say his aggressive use of tariffs is more likely to cause economic harm than help. The U.S. economy was strong when he first took office, so many are asking: was this trade war really necessary?
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