President Donald Trump has launched the United States into a trade war, the likes of which has not been seen in decades. U.S. consumers, particularly low- and middle-income households, will bear the burden of the tariffs announced on what the Trump administration called “Liberation Day.” Trump’s tariffs will cost American households $3,800 annually—with the threat of additional tariffs still looming.
This means Americans will be facing higher inflation, which will increase prices for groceries, clothing, and other everyday goods. All the while, the Trump administration is seeking to raise substantial revenue to offset the cost of massive tax breaks for the president’s wealthy donors.
Will Trump’s strategy hurt or boost jobs? The Trump administration tried the tariff-and-tax-cut approach during the president’s first term, and it resulted in a net loss of manufacturing jobs. That’s not all, Trump is currently seeking to undo investments in manufacturing, a critical industry for job creation.
Will Trump’s strategy bring prosperity to working Americans? Trump’s trade war will mean higher prices on imported goods, and these price increases will hit lower-income families the hardest. Because so many U.S. manufacturers count on imported materials to produce in the United States, they will face higher operating costs, which will detract from wages and benefits. Add to that the Trump administration’s hostility toward unions, and it is doubtful Trump’s tariffs will bring prosperity to working people.
Will Trump’s strategy strengthen U.S. partnerships and alliances? The Trump administration’s trade wars are already undermining the alliances necessary to address shared global challenges. By threatening and implementing tariffs against the United States’ allies, the Trump administration is breaking trust with those the country should be collaborating with more closely.