Markets React as Trump Declares Economic Emergency, Increases Tariffs

President Trump has declared a 'national economic emergency' to address the U.S.'s $1.2 trillion goods trade deficit, implementing the highest import tariffs since 1872, which experts warn could lead to a recession in 2025. The average tariff rate has reportedly risen to 29%, significantly impacting the manufacturing sector, which has seen nearly 5 million jobs lost since 1997. While some business groups criticize the broad nature of the tariffs for raising consumer prices and eroding economic growth, others believe this move is necessary for re-industrializing the U.S. economy. Trump maintains that the tariffs will ultimately benefit American workers and boost the economy by hundreds of billions and create millions of jobs. The mixed reactions highlight a deep divide over the effectiveness and consequences of his trade policies, with concerns about their immediate impact on consumers and businesses. As the situation evolves, many are watching closely for signs of how these tariffs will reshape the U.S. economic landscape.