On April 2, 2025, President Trump announced sweeping tariffs, imposing a universal 10% duty on all imports. He claims this move will reduce trade deficits and boost U.S. manufacturing despite concerns of market turmoil.

Economists are raising alarms about rising inflation and potential stagflation due to tariffs. Cost increases for consumers and slower growth could result, sparking debates about the effectiveness of Trump's strategy.

Trump describes tariffs as vital for economic growth, predicting $6-7 trillion in new investments. However, many analysts challenge this optimism, warning of serious recessions and rising unemployment if tariffs persist.

Wall Street has reacted sharply to Trump's tariff announcements, with benchmark indices experiencing significant drops. The Dow and S&P 500 have faced their largest declines since 2020, showing investor concerns.

Tariffs could lead to higher prices for everyday goods like electronics and clothing. Low-income households may see an annual cost increase of around $1,000, raising important questions about affordability.

Industries face rising costs for raw materials, which may affect production and profit margins. While Trump aims to bring jobs back to America, many businesses might struggle with established overseas supply chains.

The situation evolves as global responses to U.S. tariffs unfold. Continued tariffs without concessions risk recession, while effective negotiations could stabilize markets and reduce inflationary pressures.