Trump’s trade threats: Rising risks, growing costs

America’s economy shows signs of strain. Inflation expectations continue to rise, while consumer confidence hit a 12-year low on March 25. Despite these concerns, President Donald Trump promises economic relief. He claims “Liberation Day” will arrive on April 2, when he plans to impose new tariffs on global imports.

Trump signed an executive order on March 25, reaffirming his tariff plan during a meeting with U.S. ambassadors. He argues that these tariffs will protect American jobs and industries. However, many corporate leaders and investors disagree. They view tariffs as a tax on consumers that increases costs and disrupts supply chains.

Although Trump describes the tariffs as “reciprocal,” meaning they match other countries’ duties on U.S. goods, his recent statements suggest a shift. He hinted that some countries might receive more favorable treatment, but he offered no specifics. This uncertainty leaves businesses and investors on edge.

Economic analysts warn that new tariffs could worsen existing problems. Higher consumer prices could fuel inflation, making goods more expensive for average Americans. Businesses relying on imported materials face rising costs, potentially leading to layoffs or higher prices for consumers.

Meanwhile, U.S. exporters worry about retaliation. Other nations may impose their own tariffs on American goods, hurting industries like agriculture and manufacturing. For instance, in 2018, when Trump imposed tariffs on Chinese imports, China responded by taxing U.S. soybeans, costing American farmers billions.

Despite these risks, Trump remains firm. He argues that tough trade policies will force other countries to negotiate fairer deals. His supporters believe the tariffs will strengthen domestic industries and reduce America’s trade deficit. Critics, however, warn that these measures could push the economy closer to recession.

Businesses also face confusion due to Trump’s shifting stance. While he initially framed the tariffs as a straightforward, reciprocal policy, his comments about treating some countries more kindly add uncertainty. Companies planning for future costs struggle to navigate these mixed signals.

Surveys reflect growing concerns. A recent poll shows that over 60% of business leaders worry that new tariffs will hurt their profits. Consumer sentiment mirrors this anxiety, with many Americans bracing for price hikes on everyday goods.

As April 2 approaches, both supporters and critics await the tariffs’ impact. Trump’s aggressive trade policy marks a major gamble during an already fragile economic period. While he promises a stronger, fairer economy, many experts fear his approach could do more harm than good.

In the coming weeks, markets will react to the new tariffs. If other countries retaliate, American consumers and businesses may face even greater financial pressure. With inflation rising and consumer confidence weakening, the stakes for Trump’s trade war remain high.