Trump Tariffs Show Limited Economic Impact Despite Long-Term Risks

Despite widespread fears that President Trump's tariffs would significantly raise prices and harm the U.S. economy, recent economic data shows inflation easing and solid job growth, suggesting limited immediate impact. Companies appear to be absorbing tariff costs rather than passing them on to consumers, as evidenced by a decline in the producer price index. However, economists caution that tariffs remain high and unpredictable, and their full effects on inflation and prices may still unfold. The recent tariff truce with China, which drastically reduced tariffs on imports both ways, has reduced economic risks and led analysts to revise recession forecasts downward. Retailers like Walmart have warned of upcoming price increases on certain goods, indicating some inflationary pressure remains. Meanwhile, the Trump administration's proposed 5% tax on remittances is expected to have minimal impact on the Indian economy, though it may strain the Indian diaspora and set a precedent for other countries.