Trump’s Tariffs Spur Inflation, Retaliation, Legal Challenges

President Donald Trump has imposed new tariffs on imports from over 60 countries and the European Union, with rates beginning at 10% and reaching 20% or more in some cases, aiming to lower the U.S. trade deficit and attract foreign investment. While Trump asserts these tariffs will help domestic manufacturing and jobs, economists report they are causing inflation and higher prices for consumers, especially on electronics and computers. Some businesses have absorbed costs, but many are passing them on, with short-term price hikes of up to 18% predicted for certain goods. Major trading partners like Canada and India have retaliated with their own tariffs. Legal challenges have arisen over Trump’s use of emergency powers to enact the tariffs. The Federal Reserve notes that, despite increased tariff revenue, most costs are borne by U.S. firms and consumers, raising concerns about inflation and economic growth.