Donald Trump’s administration has come under intense fire after he enacted broad-reaching tariffs on several countries and sectors. In April, President Trump launched a round of tariffs. He slapped an incredible 50% tariff on Lesotho—a country with just over 2.3 million people—and a 10% tariff on islands off the coast of Antarctica populated solely by penguins. These decisions have alarmed the public at their potential impact on American families and companies.
The tariffs are estimated to add $2,400 a year to the average American family’s cost. These provisions would expose major corporations, such as John Deere, Nike, and Black and Decker, to billions of dollars in monetary losses. These trade policies are making a double impact. In just the months since that announcement in April, the manufacturing sector has lost a shocking 42,000 jobs. In just August, 12,000 jobs disappeared.
The tariffs set the stage for an effective 10% floor on trade for nearly all U.S. partners. Consequently, real wage growth for manufacturing employees has been flat or negative. The drop in manufacturing employment has been particularly severe, with job openings and hires down 76,000 and 18,000, respectively.
A federal appeals court recently determined that President Trump did indeed overstep his authority with these tariffs. In reaction, the Trump administration is trying to reverse this ruling via the U.S. Supreme Court. U.S. Treasury Secretary Scott Bessent has publicly ridiculed assertions that these tariffs amount to a tax on Americans.
“You’re taking these from earnings calls, and on earnings calls, they have to give the draconian scenario. There aren’t companies coming out and saying, ‘Oh, because of the tariffs, we’re doing this.’” – Scott Bessent
Bessent noted the seemingly contradictory economic indicators, stating, “If things are so bad, why was the GDP 3.3%? Why is the stock market at a new high? Because, you know, with President Trump, we care both about big companies and small companies.”
Even with all the rosy economic numbers Bessent points to, critics continue to raise doubts about the tariffs’ impact. Serious questions have been raised about whether these policies are really failing to provide the new manufacturing jobs they promised.
“Are these numbers proof that the tariffs are failing to produce the manufacturing jobs that President Trump promised?” – Kristen Welker
The fear continues to be that American companies will simply absorb the costs of these new tariffs, absorbing the sticker shock for regular consumers.