Trump Draws Retaliation with Economic Toll Expected to Be Heavy
The new tariffs imposed by President Trump have drawn swift retaliation from Canada and China, leading to concerns about the potential economic impact on the US. The tax foundation estimates that Trump's 2018-2019 tariffs shrank US GDP by about 0.2%, and the new tariffs this week against Canada and Mexico alone are projected to surpass that, even setting aside any retaliation. The uncertainty created by these tariffs is sowing confusion in the economy, with investors and consumers alike taking a hit.
- The escalating trade tensions between the US and its major trading partners threaten to undermine global supply chains and create a toxic environment for businesses operating across borders.
- Will the economic costs of this trade war ultimately be borne by American consumers, who may see increased prices for everyday goods as a result of retaliatory tariffs?