When it comes to tariffs, President Trump has been claiming America is winning, but the reality so far is proving to be different. Tariffs are sparking intense uncertainty in the U.S. and around the world — and it's yet unclear how it will all end.
For months, the full impact of Trump's tariffs was not quite clear. A big reason for that was Trump set some tariffs including a 10% tax on nearly everything the U.S. imports, but he also delayed many others. This started panic in the cooperate world with many companies rushed to import things before tariffs kicked in and then held off from passing on the full costs of the implemented tariffs to consumers.
However recent inflation data is suggesting that those cost are getting passed on and inflation is picking up. The labor market is also starting to show signs of cooling. A report by the Labor Department last week showed only 73,000 jobs were added in July, fewer than the 100,000 jobs economists had expected. The report said the U.S. had added a whopping 258,000 fewer jobs in the previous two months than first estimated. Trump angered by this report just opted to fired the top official who had been in charge of gathering the data. He is now accusing her of political bias without evidence of having manipulated the numbers.
We are just starting to see the real effects of this policy and we are seeing people getting fired. I can't wait to see what it looks like when Trump throws the country into a full blow recession...