TrumpTariffs

#TrumpTariffs President Donald Trump's recent tariff policies have sparked significant economic debates and analyses. Here's an overview of the latest insights and projections:

---

📉 Economic Impact of Tariffs

GDP Growth: The U.S. Congressional Budget Office (CBO) estimates that Trump's tariffs could reduce the U.S. federal deficit by $2.8 trillion over the next decade. However, this comes at the cost of a smaller economy, with GDP growth potentially slowing by 0.06 percentage points annually.

Inflation: The CBO projects that tariffs will raise the average annual inflation rate by 0.4 percentage points in 2025 and 2026, leading to higher consumer prices and reduced purchasing power.

Global Growth: The International Monetary Fund (IMF) forecasts U.S. economic growth to slow to 1.8% in 2025, down from 2.8% in 2024. Global growth is also expected to decelerate, with the IMF predicting a 2.8% increase in 2025, compared to 3.3% the previous year.

---

🌐 Global Repercussions

Trade Partners: Countries like Canada and Mexico are projected to experience significant economic downturns due to the tariffs. The Organization for Economic Co-operation and Development (OECD) anticipates Mexico's economy will contract by 1.3% in 2025, while Canada's growth is expected to be just 0.7%.

Inflationary Pressures: The OECD warns that the tariffs could reignite inflation, with U.S. prices expected to rise by 2.8% in 2025, up from 2.5% the previous year.

---

🛠️ Sector-Specific Effects

Steel and Aluminum: The imposition of a 50% tariff on steel and aluminum imports aims to bolster the U.S. steel industry. However, critics argue that such measures could harm broader manufacturing sectors and strain trade relations with allies.

Consumer Goods: Tariffs on products like electronics, toys, and footwear are expected to increase prices for consumers, potentially leading to reduced demand and economic slowdown.

---

🔮 Future Outlook

Policy Uncertainty: The unpredictable nature of Trump's trade policies has created uncertainty in global markets, affecting investment decisions and economic stability.

Economic Strategies: While the administration aims to reduce the federal deficit through tariffs, the broader economic implications, including potential stagflation, remain a concern for economists and policymakers.

---

---

US President Donald Trump is back in action: from June 4, 2025, he doubled tariffs on steel and aluminum imports to 50%. This move is aimed at forcing trading partners, including the EU, Japan, India, and Vietnam, to submit their 'best offers' by July 8, or face even harsher tariffs.

#TrumpTariffs hours ago
US President Donald Trump has signed an order doubling tariffs on steel and aluminium imports from 25% to 50%.

The move hikes import taxes on the metals - key inputs in everything from cars to canned food - for the second time since March.

Trump has said the measures, which come into effect on Wednesday, are intended to secure the future of the American steel industry.

However, critics say the protections could wreak havoc on steel producers outside the US, spark retaliation from trade partners, and come at a punishing cost for American users of the metals.

Advertisement

Hours before he hiked the duties, many firms directly affected could scarcely believe the plan was moving forward, hoping it would turn out to be temporary or some kind of negotiating ploy.

Even as Trump moved forward with the deal, the UK was granted a carve-out from the measures, leaving duties on its steel and aluminium at 25%, a move Trump said reflected its ongoing trade discussions with the US.

"Always the question with Mr Trump is, is this a tactic or is this a long-term plan?" said Rick Huether, chief executive of Independent Can Co, a Maryland-based business, which brings in steel from Europe and turns it into decorative cookie tins, popcorn boxes, and other products.

He said he had put investments on hold and feared the abrupt changes, and price increases would lead his customers to turn to alternatives such as plastic or paper boxes.

"There's a lot of chaos," he said.

The US is the biggest importer of steel in the world, after the European Union, getting most of the metal from Canada, Brazil, Mexico and South Korea, according to the US government.

During his first term, Trump imposed tariffs of 25% on steel and 10% on aluminium, citing a law that gives him authority to protect industries considered vital to national security.

But many imports ultimately escaped the duties after the US struck trade deals with allies and granted exemptions to certain imports at the request of firms.

Trump ended those carve-outs in March, saying he was unhappy with the way the protections had been weakened.

At Friday's rally at the US Steel factory, he said wanted to make tariffs so high that US businesses would have no alternative but to buy from American suppliers.

"Nobody's going to get around that," he said of the 50% rate. "That means that nobody's going to be able to steal your industry. It's at 25% - they can get over that fence. At 50%, they can no longer get over the fence."