Economists have warned that tariffs not only increase the cost of goods for consumers, but also reduce the competitiveness of U.S. companies and threaten jobs.
The U.S. economy recorded its first contraction in three years after shrinking by 0.5% annualized in the first quarter of 2025, according to revised data from the Bureau of Economic Analysis (BEA).
This decline reverses the 2.4% growth recorded at the end of 2024 and is primarily attributed to rising imports and a slowdown in public spending. However, experts highlight the impact of tariffs and the erosion of consumer confidence, which is the foundation of the U.S. economy.
The tariff escalation initiated by the Trump administration has disrupted supply chains and increased prices for imported goods, dampening household purchasing sentiment.
“The uncertainty generated by protectionist measures and volatility in trade policy have damaged consumer confidence, a key pillar of the U.S. economy,” stated a recent report from the Forum 50 for Digital-Physical Integration, led by Hu Qimu.
Robert Koopman, former chief economist of the World Trade Organization, warned at the Summer Davos Forum that “tariffs not only raise costs for consumers but also reduce the competitiveness of U.S. firms and threaten jobs in the manufacturing sector.”
Satellite data on cargo movements also show a significant decline in container shipments from China, signaling potential supply shortages and additional inflationary pressures.
The Conference Board’s consumer confidence index fell to its lowest level in five years, reaching 93 points in June, down from 98.4 the previous month, according to the organization’s own figures.
Meanwhile, the Federal Reserve has warned of an economic slowdown and projected growth of only 1.7% for 2025.
The global trade tensions index has reached record levels, driven by new reciprocal measures from the U.S., according to the China Council for the Promotion of International Trade.
While Congress debates selectively cutting tariffs to ease pressure on key sectors, the discussion has also moved to the international stage, where U.S. partners and competitors are watching with concern over a potential shift toward protectionism that could erode the foundations of global trade.
— news from Resumen Latinoamericano –