4/6/2025
One thing you can do today: Learn more about how tariffs impact the economy and your daily life, then decide where you stand.
Read the original article: Market Watch
What Happened
U.S. stocks dropped sharply last week — the worst day since 2020 — with about $3.5 trillion in value lost. This drop happened after the Trump administration announced new tariffs (taxes on goods from other countries), which many fear could trigger a global trade war. These tariffs are part of Trump’s “reciprocal” policy, which means if another country taxes U.S. goods, the U.S. will now do the same to their goods. It's usually used to make imported goods more expensive, giving local businesses an edge — but it can also make everyday products cost more for consumers.
Investors are hoping that Trump’s team will make deals with countries like China and the EU soon to lower or remove the tariffs. But experts say there’s only a small window — about two months — before the damage to the economy becomes hard to fix.
Why It Matters
If these tariffs stay in place for too long, they could:
- Raise prices for everyday goods (inflation)
- Slow down the economy (less business growth and fewer jobs)
- Hurt retirement savings and investments (stock and bond markets could drop further)
This could lead to a situation called stagflation — when inflation is high but the economy is weak — which is one of the worst situations for an economy.
Who It Affects
- Everyday Americans: Higher prices on imported goods could make groceries, electronics, and clothing more expensive.
- Investors and retirees: Stock market drops hurt retirement funds like 401(k)s.
- Workers: A weaker economy could mean job losses or slowed hiring.
- U.S. businesses: Companies that rely on parts or products from other countries may face higher costs.
Why Your Voice Matters
Your elected officials help shape trade policy. If you support or oppose the tariffs, your voice can influence negotiations and future policies. Public pressure can push lawmakers to act — or to hold the administration accountable.
Why You Should Care
Whether or not you follow Wall Street, these tariffs can impact:
- The cost of your groceries and online purchases
- Your job or your company’s ability to grow
- Your savings and retirement funds
Even if it seems distant, trade policy can touch almost every part of daily life.
What You Can Do
If You Support the Tariffs (You want the U.S. to stand firm and push for fair trade):
- Contact your representatives to tell them you support Trump’s tariff strategy.
- Donate to or follow organizations that promote strong U.S. manufacturing, such as The Reshoring Initiative.
- Stay informed through policy-focused groups like The Council on Foreign Relations (CFR).
If You Oppose the Tariffs (You’re worried about economic harm, higher prices, and global instability):
- Call or email your local representative using tools like Common Cause or USA.gov to express your concerns.
- Support think tanks or advocacy groups focused on trade stability and economic policy, like:
- Sign petitions or share educational content to raise awareness about the economic risks of long-term tariffs.
What Does the Current Administration Do in This Case?
The Trump administration is pushing for what it calls “fairer” trade. That means putting taxes on countries that tax U.S. goods, in hopes they’ll drop their tariffs. But that can also lead to trade wars — when countries keep raising tariffs on each other in retaliation.
Who Are the Key Players?
- Trump Administration: Responsible for setting the tariffs and leading trade negotiations.
- Commerce Department: Oversees trade, economic growth, and helps enforce tariffs. Key figure mentioned: Commerce Secretary Howard Lutnick.
- Wall Street (Investors and Economists): Warns of the risks if no trade deal is reached soon. They're already predicting a recession (a period of economic decline).