Trump posted today (April 5th) and said: "Big businesses are not worried about tariffs because they know tariffs will always be there, but they focus on big and beautiful deals that will strengthen our economy. Very important. Now is the time to act!!!’"
Although Trump intends to use tariffs to push manufacturing back to the United States, the reconstruction of the supply chain is not easy. Many companies rely on global supply chains, and it is difficult to find alternative suppliers in the short term. For example, due to the 25% import car tariff, the Stellantis Group temporarily closed factories in Canada and Mexico, which instead led to the loss of 900 workers in the United States.
American economists generally worry that Trump's tariff policy may lead the US economy into a "stagflation" dilemma, where economic growth stagnates and inflation coexists. Goldman Sachs has raised the probability of a US economic recession within the next 12 months to 35%.
The tariff policy will cause an increase in the price of imported goods, increasing the cost of living for American consumers. It is estimated that tariffs increase each American's annual expenditure by $1350, raising prices by about 2.5%, which will significantly compress disposable income and hinder economic growth.
Original article: https://www.toutiao.com/article/1828517904200772/
Disclaimer: The article only represents the author's personal views.