Trump wagers US economy in high-stakes tariff gamble at 100-day mark
President Donald Trump's first 100 days of his second term have been marked by the announcement of harsh reciprocal tariffs, including significant fees on Chinese imports, which economists deem politically motivated and potentially damaging to the U.S. economy. While Trump declared these tariffs as a strategy to lower prices and create jobs by reducing trade deficits, experts warn that this approach could halt billions in trade between the U.S. and China, disrupt global supply chains, and increase recession risks. The initial market reaction was negative, with stock markets experiencing significant losses, and concerns over rising consumer prices due to supply chain disruptions. Despite these concerns, Trump believes the tariffs will ultimately benefit the U.S. economy, although he has paused them for 90 days to negotiate better trade deals. Economists predict potential de-escalation, but caution that Trump's high-stakes approach could lead to broader economic instability if not managed carefully.
President Trump, in his first 100 days of his second term, announced harsh tariffs aimed primarily at China, which experts argue are politically motivated and unlikely to secure the desired benefits for the U.S.
The tariffs, including a universal 10% baseline and additional higher tariffs on specific countries, led to significant stock market losses and increased fears of recession due to potential disruptions in global trade.
Economists have raised the likelihood of a U.S. recession from 10% to 55% due to the tariff policies, highlighting the potential economic risks associated with these measures.
Trump paused the tariffs for 90 days to allow for trade negotiations, yet the move has already caused price hikes in consumer goods and supply chain disruptions, affecting major retailers like Walmart and Target.
The president remains confident in his tariff policy, dismissing economic volatility as temporary and asserting that the tariffs will ultimately reduce trade deficits and bring economic benefits.
Despite Trump's optimism, there is skepticism about the tariffs achieving their intended goals, with warnings that continued tariffs could severely impact trade relations with China and other major economies.
Economic experts are concerned that Trump's approach could lead to broader financial instability, with risks of a repeat of the 2008 financial crisis if the tariffs trigger a financial panic.