A Policy That Hurts the Most Vulnerable
Marc Rowan, CEO of Apollo Global Management, spoke plainly on CNBC: President Trump's tariffs have frozen economic progress. Businesses hesitate, mergers stall, and the consequences land squarely on working Americans. These policies, pitched as a shield for national interests, instead deepen hardship for those least equipped to bear it.
Families feel the pinch immediately. Studies estimate a 2 to 3 percent rise in consumer prices, adding $2,600 to $4,900 to yearly household expenses. For a single parent balancing childcare and bills, higher costs for essentials like clothing or car maintenance create real stress. These figures represent more than data; they reflect daily challenges for millions.
The Economy Is Stumbling Now
Research paints a grim picture. GDP growth is projected to fall by 1.1 percentage points in 2025, with long-term declines of 0.4 to 0.6 percent. Middle-income households face lifetime losses of up to $22,000 from lower wages and reduced investments. Car prices could jump 12 to 15 percent, and apparel costs are spiking. These trends block pathways to stability for working people.
Financial markets reflect the strain. After the April 2025 tariff announcements, the S&P 500 dropped over 10 percent in two days. Bank stocks hit lows as loan demand faded, and tighter liquidity raised borrowing costs. With a 45 percent chance of recession, businesses delay hiring and expansion, stunting job creation and innovation.
Some defend these tariffs, claiming they revive manufacturing and shrink trade deficits. This perspective overlooks reality. Exports have plummeted by over 16 percent, and economies in Canada and China are shrinking too. The promised manufacturing boom remains elusive, while service industries falter and investment lags.
Lessons From a Troubled Past
History offers clear warnings. The 1930 Smoot-Hawley Tariff Act fueled the Great Depression by choking trade and inviting retaliation. The 2018 Trump tariffs similarly raised costs and slowed growth, forcing central banks to adjust. Broad tariffs consistently disrupt supply chains and inflate prices, undermining economic stability.
Global supply chains now face $184 billion in annual disruption costs. European shippers report frequent delays, and many firms are dual-sourcing to adapt. Tariffs worsen these pressures, compounding geopolitical and regulatory challenges. Consumers ultimately pay the price, and job growth suffers in a world that thrives on connectivity.
Choosing a Stronger Future
Economists aligned with Democratic priorities advocate a better way: precise evaluations of trade barriers paired with expert-driven negotiations. These methods safeguard workers and foster sustainable growth without the chaos of broad tariffs, which rely on shaky legal grounds like the National Emergencies Act.
Proponents of tariffs argue they force fairer trade terms. Yet, the evidence shows disproportionate harm and little gain. Legal challenges loom, and strained alliances weaken our global influence. Investing in education, infrastructure, and clean energy would create jobs and resilience far more effectively.
We stand at a crossroads. Tariffs threaten our families and our future. By embracing cooperative trade strategies, we can protect livelihoods, restore confidence, and build prosperity. The path forward demands unity and vision, not division and disruption.