With economic indicators already flashing red, President Trump gave the United States a sharp shove down the slope toward recession on Wednesday by announcing tariffs on nearly every American trade relationship. Economists and expert observers said the size of the tariffs announced exceeded their worst-case expectations:
CNBC reacts right after Trump's "Liberation Day" tariff announcement: "And the market reaction after hours — I’ve never seen anything like it. This — I think, fair to say — is worse than the worst-case scenario of the tariffs that many in the market expected the president to impose."
— Justin Baragona (@justinbaragona.bsky.social) 2025-04-02T21:12:51.042Z
Here’s why this matters: Tariffs are import taxes on people who buy things. Raising import taxes in the United States to levels higher than people pay in any other wealthy country will make stuff that Americans import — from smartphones and car parts to clothes, fruits and vegetables — more expensive and less affordable.
There's no question that today's tariff announcement will give the United States the highest tariff rates of any industrialized country. And it's not even close.
— Justin Wolfers (@justinwolfers.bsky.social) 2025-04-02T21:23:28.452Z
What’s more: people who can afford to pay import taxes on stuff they want or need will ratchet down their spending on other stuff — such as meals out, home improvements, or streaming-service subscriptions. That downward pressure on consumer spending in the United States will put U.S. jobs at risk.
Americans are tapping the brakes on spending — pulling back on dining out, hotel stays and other expenses, as they boost their savings ahead of new tariffs and continued economic uncertainty.
— The Washington Post (@washingtonpost.com) 2025-03-31T12:41:13.295Z