President Trump Tariffs: Key effects

US President Donald Trump’s tariffs—especially the 54% levy on Chinese goods—triggered widespread economic consequences.

The US economy is projected to shrink by 4.5% in Q2 2025, with inflation and production costs rising.

The S&P 500 fell 10% in two days, while manufacturing suffered major job losses.

Tariffs disrupted supply chains and logistics, worsening production.

In retaliation, China imposed a 34% tax and export curbs.

Businesses passed costs to consumers, while farm exports dropped due to counter-tariffs.

Strained trade relations, rising prices, and fears of stagflation highlight the broader risks as the global economy navigates the fallout of the escalating tariff war.