Trump's bold return to power promises swift action and economic resurgence, but is the reality matching the rhetoric?
In his first State of the Union speech of his second term, U.S. President Donald Trump declared, "America is back," touting a flurry of executive orders and actions taken in just six weeks. With nearly 100 executive orders and over 400 executive actions under his belt, Trump claims to have accelerated progress faster than any administration in recent history.
Among the most notable of these actions are the tariffs imposed on foreign goods. Just hours before his congressional address, the U.S. implemented a 25 percent tariff on goods from Canada and Mexico and doubled tariffs on Chinese imports to 20 percent. Trump asserted that these tariffs are designed to "make America rich again and make America great again," highlighting benefits for American farmers.
However, the actual impact of these tariffs paints a more complex picture. The integration of global supply chains means that American manufacturers face higher costs for raw materials, potentially leading to scaled-back production and job cuts—contrary to Trump's promise of job creation. Additionally, it is American consumers, not foreign companies, who ultimately bear the cost of these tariffs. The Tax Foundation reported that tariffs imposed in 2018 resulted in annual net losses of $16 billion to the U.S. economy.
Further adding to the economic strain, the Peterson Institute found that the direct cost of import taxes on Canadian, Mexican, and Chinese goods amounts to an extra $1,200 annually per typical American household.
Moreover, targeted countries have responded with their own tariffs. China, for example, has imposed additional tariffs of up to 15 percent on U.S.-grown chicken, soy, beef, pork, and other key farm products, exacerbating the challenges faced by American businesses and consumers alike.
As Trump's administration continues to push forward with its "swift and unrelenting actions," the question remains: will these policies lead to the "greatest and most successful era" in U.S. history, or are they setting the stage for economic decline?
Reference(s):
cgtn.com
