Trump's Proposed Tariffs Could Worsen Inflation and Recession Risks, Cost Jobs and Hurt Growth

Trump's proposed tariffs could spur retaliation from trading partners, worsening inflation, costing jobs, hurting growth, and potentially causing a recession.

Economists estimate Trump's 10% tariff on imports and 60% tariff on China could cost 675,000 American jobs and shave 0.6 percentage points off GDP growth.

Higher tariffs would likely slow economic growth, drive up consumer prices further, negatively impact business sentiment, and cause instability in financial markets.

Unlike when Trump first imposed tariffs, the economy today faces high inflation and interest rates, meaning new tariffs could further drive up costs.

While Trump argues other countries pay tariffs, economists say the costs are actually borne by American businesses and consumers in the form of higher prices.