Tariffs and inflation how Trump’s ambitions crippled the US economy
Trump’s Tariff War Fuels inflation, Strains Financial Markets, adn Threatens American Households
Mehr News Agency, international Desk: In recent months, Trump’s trade policies have had widespread impacts on teh U.S. economy and its trade relations with global powers. One of his most notable actions during his second presidential term was imposing heavy tariffs on imports from various countries—particularly China—which has had notable consequences for the U.S. economy. These policies, ostensibly designed to protect domestic production and reduce the trade deficit, have instead raised production costs, weakened competitiveness, and triggered crises across multiple industries.
Crisis Shadows U.S. Financial Markets
The Trump administration’s sweeping tariffs imposed in April 2025 plunged U.S. financial markets into an unprecedented crisis, severely affecting key stock indices, investor confidence, and economic stability. Following the announcement of new tariffs:
- The S&P 500 dropped over 10% in two consecutive days, entering bear market territory.
- The Dow Jones Industrial Average lost more than 4,000 points—its largest two-day decline in history—with losses continuing unabated.
