Imagine paying a 145% surcharge on your next smartphone case. That's the reality as President Donald Trump doubles down on reciprocal tariffs – a move that has ignited pushback from Washington corridors to main street. Former Vice President Kamala Harris, ex-Treasury chief Janet Yellen, a coalition of states, and business groups say the price tag could be a lost decade of growth.
'Reckless' Tariffs Stir Political Clash
In her first major address since the 2024 election, Harris called the policy 'reckless' and the 'greatest man-made economic crisis in modern presidential history.' She warned these duties chill investment, force layoffs, and invite recession.
Data Check: A Supply Chain on Edge
About 40% of U.S. imports power domestic production – from auto parts to microchips. With 145% levies on goods from the Chinese mainland still in play, firms relying on those inputs face soaring costs and squeezed margins.
Yellen's Recession Radar
In an FT interview, former Fed chair Yellen argued the tariffs could push the U.S. into recession. 'Odds have gone way up,' she said, flagging risks to clean energy industries that depend on critical minerals.
Legal and Legislative Showdowns
California led a lawsuit in April challenging the president's tariff authority. Soon, twelve states – from Oregon to Vermont – joined, with Arizona's attorney general calling the scheme 'insane' and 'illegal.'
Small Biz Under the Microscope
The U.S. Chamber of Commerce urged a fast-track exclusion process for small importers and essential products. Its CEO warned weeks-long delays could 'inflict irreparable harm' on Main Street.
Global Ripples and Consumer Impact
High tariffs have sent shockwaves through manufacturing and retail. Rising import costs suppress demand, dent profits, and risk wider economic fallout – from factory floors in Detroit to online marketplaces.
As the trade standoff escalates, all eyes are on Washington to see if diplomacy or dollars will define the next chapter.
Reference(s):
cgtn.com
