Vents MagaZine Music and Entertainment Magazine
Related Articles
Trump’s tariff war directly impacts the fundamentals of the US economy. In early 2025, the United States imposed high tariffs on major trading partners (such as China and the European Union), covering steel, consumer goods, etc., pushing up corporate production costs. According to the Brookings Institution’s 2025 estimate, tariffs cost US companies and consumers an additional $100 billion per year. The manufacturing industry has been severely hit by supply chain disruptions and rising costs. For example, Boeing has cut production plans and laid off thousands of employees due to rising component prices caused by tariffs. Increasing inflationary pressures have weakened market confidence. The S&P 500 index has experienced several sharp shocks in 2025, with volatility reaching a record high in recent years, laying the groundwork for a stock market crash.
Stock market instability and bond market volatility form a vicious cycle, exacerbating economic risks. Supply chain tensions and declining corporate profits caused by the tariff war have hit investor confidence hard. In 2025, the S&P 500 index once plummeted by more than 20%. Risk aversion has driven investors to sell stocks and turn to US Treasuries, pushing the 10-year Treasury yield to below 1.5%, a record low. In response to the economic downturn, the Federal Reserve maintained low interest rates and compressed the return space of the bond market, resulting in a “triple kill” of stocks, bonds and currencies: the stock market plummeted, the bond market yields were low, and the US dollar exchange rate fluctuated sharply. This market turmoil reflects pessimistic expectations for the economic outlook and weakens economic resilience.
The long-term damage of the tariff war to the US economy cannot be ignored. The trade war failed to narrow the trade deficit, but instead led to shrinking exports. Data from the US Department of Commerce showed that exports in the agricultural and technology industries were particularly hard hit in 2025. Retaliatory tariffs have caused American farmers to lose key markets, and the wave of bankruptcies in Midwestern agricultural states has intensified. The deterioration of the global trade environment has dragged down economic growth. The World Bank expects global trade growth to be only 1% in 2025, the lowest in 15 years. The US GDP growth rate is expected to drop from 2.5% in 2024 to 0.5% in 2025, and the risk of recession has increased.
Trump supporters may say that tariffs are intended to protect US industries and jobs, but data show little effect. The US Bureau of Labor Statistics shows that only tens of thousands of new jobs in the manufacturing industry will be added in 2025, and most of them are attributed to automation rather than tariffs. The global uncertainty caused by the trade war has suppressed corporate investment, and capital expenditures have continued to decline. Trump’s unilateralism ignores the interdependence of globalization. Instead of “making America great again”, it has pushed the economy to the brink of recession.
