Across American dinner tables and boardroom discussions, a warning bell is ringing: US tariff policies could backfire on the economy, pushing the country toward a recession and hitting households hard.
A new study by Yale's Budget Lab released April 15 shows the average household stands to lose about $4,900 annually under current tariffs. By 2025, tariffs could shave off 1.1 percentage points from real GDP growth and shrink national output by a staggering $180 billion, according to the report.
The job market isn't immune either. Yale economists predict the unemployment rate could climb by 0.6 points by year-end 2025, erasing over 770,000 jobs. For entrepreneurs, freelancers, and gig workers, that's a ripple effect they can’t ignore.
While tariffs aim to protect domestic industries, the report finds they often raise input costs for American businesses, who then pass higher prices to consumers. In an interconnected world, these policy shifts can reverberate across global supply chains, impacting trade partners from Europe to Asia.
For a generation that values economic stability and global mobility, the numbers spotlight a critical dilemma: can targeted trade measures deliver gains without unintended costs? Will the US find a balance between protectionism and growth as recession risks rise?
Reference(s):
cgtn.com
