Is Donald Trump's tariff blitz killing the American Dream?

India Today

a day ago

For all of US President Donald Trump's promises of an economic 'golden age,' a spate of weak economic indicators tells a more troubling story as the impacts of his policies come into sharper focus.The latest jobs report came in underwhelming. Consumer prices are creeping upward again. And growth is slowing compared with last year. The numbers don't lie, and they're not painting a picture of prosperity.advertisementMore than six months into his term, Trump has aggressively reshaped America's trading, manufacturing, and tax frameworks to reflect his economic nationalism. His blitz of tariff hikes, spending shifts, and executive orders may have pleased core supporters, but the aftershocks are now rippling through the economy.
Trump has positioned himself to take credit for any gains while scrambling to assign blame when data points disappoint. After Friday's bleak jobs report, he fired the head of the agency responsible for the numbers, claiming without evidence that the figures were politically manipulated. 'The Economy is BOOMING,' Trump posted on Truth Social, contradicting the very data his own government released.The economic fallout of his policies may still be unfolding, but what's becoming increasingly clear is that the promised boom is proving elusive. US ECONOMY IS NOT 'BOOMING'Economists are beginning to detect early warning signs. Growth has slowed to an annualised 1.8% in Q2, far below the 3–4% Trump promised. Inflation is rising again, with core CPI up 3.6% year-on-year. Job creation has dropped below expectations for the second straight month. Real wages are stagnating.And yet, Trump's rhetoric remains unchanged. He's banking on delayed benefits: that tariffs will protect American jobs, that interest rate cuts will fuel a housing revival, and that deregulation will eventually drive corporate investment.But for many Americans already reeling from higher prices and fewer job openings, that promised future feels increasingly out of reach.TARIFF CHAOS TO HURT US CONSUMERSTrump's most audacious bet—sweeping tariffs on nearly all foreign goods—is now colliding with reality. The tariffs, which began taking effect this month, are structured to escalate further in early 2026.The White House has argued that its recent wave of trade deals—from the EU and Japan to the Philippines—will cushion the blow. But for the average American consumer, tariffs function as a tax. Importers raise prices to cover the duties, which trickle down into grocery bills, construction materials, appliances, and cars.The administration insists these moves are part of a longer-term strategy to reshore manufacturing and reduce trade deficits. advertisementBut that narrative is faltering.Manufacturing output fell 0.4% in June. The US trade deficit widened in July to $71.2 billion. And consumer sentiment, according to the University of Michigan survey, has slipped to its lowest level in 18 months.TRUMP SUPPORTERS DEFEND TARIFFSDespite mounting evidence of economic turbulence, Trump's supporters continue to defend the tariffs, arguing that the full impact will take time to materialise. Some Republican strategists believe the short-term pain is a necessary price for long-term gain.'Considering how early we are in his term, Trump's had an unusually big impact on the economy already,' Alex Conant of Firehouse Strategies told The Associated Pr. 'The full inflationary impact of the tariffs won't be felt until 2026. Unfortunately for Republicans, that's also an election year.'Even so, public approval of Trump's economic stewardship is slipping. Just 38% of adults support his handling of the economy, according to a July AP-NORC poll, down from 50% at the end of his first term.Trump's latest move—blaming the Federal Reserve for not cutting interest rates fast enough—has unnerved investors. Rate cuts may marginally ease mortgage rates, but economists warn they could also re-ignite inflation. It's a risky wager that may undermine confidence in the Fed's independence.advertisementGLOBAL SPILLOVERTrump's tariff blitz isn't just straining American households, it's also hurting global trade flows. On August 1, the US formally sanctioned six Indian firms for allegedly buying Iranian petrochemicals, citing violations of Trump's tightened export regime. The sanctions sent shockwaves through India's petrochemical sector, with several companies now facing blocked access to US markets.The impact isn't limited to India. European automakers are bracing for higher input costs. Southeast Asian textile exporters are seeing orders rerouted. And China, already caught in a trade war redux, has hinted at retaliatory tariffs of its own. The idea that Trump's trade strategy would isolate China while strengthening US alliances has so far proven inaccurate. And now, it seems that the US is now entangled in disputes on multiple fronts.Even then, Trump's allies insist that it's too soon to judge the results. 'President Trump is implementing the very same policy mix of deregulation, fairer trade, and pro-growth tax cuts at an even bigger scale – as these policies take effect, the best is yet to come,' said White House spokesman Kush Desai.But that optimism is increasingly at odds with reality on the ground. For many Americans, the promised economic revival feels more like a slow bleed. Higher prices, a jittery job market, and falling real incomes are beginning to bite.If this is Trump's golden age, it's starting to look like fool's gold. So far, 'making America great again' seems to be coming with a price tag Americans weren't told about.- EndsTune InTrending Reel