Newsweek, April 2025
President Donald Trump’s tariffs are likely to cause short-term pain for U.S. consumers, according to experts, but economists told Newsweek it’s difficult to know exactly when Americans will know for sure if the economic moves achieve the president’s goals. Trump this week announced new tariffs on dozens of countries across the globe, stirring concerns from economists who say the tariffs will lead to higher prices. Trump, however, has said the tariffs are necessary to address the trade deficit with other countries, as well as restore U.S. manufacturing.
The stock market plummeted after Trump’s tariff announcement, with the Dow Jones Industrial Average closing nearly four percent lower on Thursday in the market’s worst day since the COVID-19 pandemic. The moves have sparked fears of a possible recession. Most economists agree the tariffs are likely to cause short-term consequences for Americans, who may face higher prices or an economic slowdown. But Trump is banking on the tariffs having a long-term benefit to the economy that will eventually balance out those pains.