In New York, the S&P 500 was down 0.8%, marking one of its worst losses in recent years. The index is poised to conclude the first quarter of the year with a 5.9% loss, potentially making it the worst quarter in nearly three years. The Dow Jones Industrial Average also saw a decline of 111 points, or 0.3%, as of 10:10 a.m. Eastern time, while the Nasdaq composite dropped by 1.7%.
The primary reason for these market fluctuations is the impending Trump tariffs. Economists at Goldman Sachs anticipate that Trump will announce an average reciprocal tariff of 15%, leading them to adjust their forecasts for inflation and U.S. economic growth for the remainder of the year. They have also raised concerns about a potential 35% chance of recession within the next year, up from an earlier forecast of 20%. This shift reflects a decrease in growth projections, declining confidence, and indications from White House officials suggesting a willingness to endure economic hardships.
The uncertainty surrounding these tariffs could prompt U.S. households and businesses to curtail their spending, thereby impacting an economy that had been performing well at the end of last year.
President Donald Trump’s reckless and tumultuous economic policies are wreaking havoc on the economy, sending consumer sentiment into a downward spiral and increasing the likelihood of the United States plunging into a severe recession.
In March, consumer sentiment took a nosedive, plummeting by 12% from February as individuals across the political spectrum expressed fears of a worsening economy in the near future. The looming uncertainty surrounding economic policy developments continues to weigh heavily on consumers, with a staggering two-thirds anticipating a rise in unemployment over the next year—the highest level since 2009.
Recent data has economists on edge, with fears mounting that Trump’s policies could push the economy over the edge. Both businesses and consumers are pulling back in response to the chaos emanating from the White House, fueling apprehensions of an impending economic crisis.
Economic columnist Heather Long of The Washington Post has sounded the alarm, cautioning that a sharp decline in consumer spending could trigger a recession, given the economy’s heavy reliance on consumer activity. If consumers halt their spending—whether due to actual price increases resulting from Trump’s tariffs or mere speculation—it could spell disaster for the economy.
Republicans are driving up costs, sabotaging the economy, and hurtling the nation towards a recession. The stakes are high, and the consequences dire.
For years, the debate around tariffs has raged, often framed as a tool to protect domestic industries and bring jobs back home. However, a closer look reveals a less palatable truth: tariffs, ultimately, hit the pockets of American consumers hard. While the intention might be noble, the reality is that these taxes on imported goods often translate into higher prices, reduced choices, and a weakened economy for everyone.
So, how do tariffs negatively impact the average American? Here’s a breakdown:
1. Higher Prices for Everyday Goods: This is perhaps the most immediate and noticeable effect. When a tariff is placed on imported goods like clothing, electronics, or even ingredients for our favorite foods, the cost of importing those goods increases. Businesses, often with tight margins, are left with two choices: absorb the cost (which can be unsustainable) or pass it on to the consumer in the form of higher prices.
Think about that imported washing machine you were looking to buy. A tariff on imported steel, for example, increases the cost of the materials used to make it, driving up the retail price. Suddenly, that washing machine isn’t so affordable anymore. This applies to countless products we use daily, from smartphones to coffee beans.
2. Less Choice and Reduced Competition: Tariffs protect domestic industries by making imported goods less competitive. While this sounds good on paper, it can stifle innovation and lead to complacency. Without the pressure of foreign competition, domestic companies may become less motivated to improve their products, offer competitive pricing, or explore new innovations.
This translates to fewer choices for consumers. Instead of having a range of products to choose from, consumers might be stuck with fewer, potentially more expensive, options offered by a shrinking pool of domestic suppliers. This lack of competition ultimately limits consumer power and pushes prices higher.
3. Supply Chain Disruptions and Increased Uncertainty: Modern supply chains are incredibly complex and interconnected. Tariffs disrupt these carefully orchestrated systems, forcing businesses to scramble for alternative suppliers, which can be time-consuming and costly. This disruption can also lead to shortages of certain goods, further driving up prices.
Moreover, the uncertainty surrounding tariffs can scare businesses from investing and expanding. The threat of new tariffs or changes to existing ones makes it difficult for companies to plan for the future, leading them to delay investments, cut back on hiring, and ultimately hindering economic growth.
4. Retaliatory Tariffs and Trade Wars: Tariffs rarely happen in isolation. When one country imposes tariffs on another, the affected country often retaliates with its own tariffs. This tit-for-tat escalation, known as a trade war, can severely disrupt global trade and damage economies on both sides.
American farmers, for instance, have been significantly impacted by retaliatory tariffs on agricultural products. Reduced demand for their goods leads to lower prices and financial hardship, demonstrating the widespread impact of trade wars that ultimately impact consumers through higher grocery bills.
5. Reduced Purchasing Power: Ultimately, the combined effect of higher prices, reduced choices, and economic uncertainty translates to a reduced purchasing power for American consumers. Every dollar spent on higher-priced goods is a dollar less that can be used for other necessities, savings, or investments. This can have a significant impact on household budgets, particularly for low- and middle-income families.
While Trump often argues for their benefits in protecting domestic industries, the evidence suggests that the costs far outweigh the benefits, particularly for US consumers. Tariffs act as a hidden tax, eroding purchasing power, limiting choices, and disrupting the economy. A focus on free trade, fair competition, and policies that foster innovation will ultimately benefit American consumers far more than protectionist measures that leave us all paying the price.
On Tuesday, the House narrowly approved a continuing resolution to fund the government until the end of September. However, this decision was met with criticism from Senate Democrats who accused Republicans of taking a partisan approach by excluding them from the drafting process.
With Republicans holding 53 Senate seats and needing 60 votes to defeat a filibuster, the bill’s passage was not guaranteed. The main issue with the bill is that it advances President Trump’s/Musk’s projects without proper oversight from Congress, undermining the power of the purse. Both are in a full destroy programs and agencies the middle class relies on.
The exclusion of Democrats from the process has raised concerns among some senators and aides, who fear setting a dangerous precedent. By supporting the bill, they would essentially be giving House Republicans free rein to dictate government funding without bipartisan input.
Senator Ben Ray Lujan of New Mexico condemned House Republicans for their actions, warning that they would be held responsible for any potential shutdown. Despite Republican control of the House, Senate, and White House, they continue to shift blame onto the minority party.
In reality, the Republicans are the ones in control, and it is their plan and budget that have led to this mess. It is time for them to take responsibility for the consequences of their actions.
A 10% drop is no small matter in the world of professional investors, who have coined the term “correction” for such occurrences. The S&P 500’s 1.4% decline on Thursday was the first of its kind since 2023. These losses were exacerbated by Trump’s aggressive stance in the ongoing trade war, with threats of imposing hefty taxes on European wines and alcohol.
Trump’s sudden shift from championing economic growth to acknowledging the possibility of a recession this year has sent shockwaves through the financial world. The transition from a robust economy under Biden to the looming threat of a recession under Trump is a stark and unsettling reality.
The saying goes “people before politics,” but it seems like House Speaker Mike Johnson (R-La.) and his deep-red congressional district have never heard of it. Shockingly, approximately one in four residents under the age of 65 in Johnson’s district rely on Medicaid for health insurance, while one in five residents depend on food stamps to afford groceries. Despite this, the budget resolution passed by the House last month on a party-line vote would cut Medicaid by $880 billion and slash food stamp spending by $230 billion.
Johnson’s budget, supported by Republicans, will not only hurt his senior citizens but also a large percentage of his voters. The Republican budget package would expand Trump’s 2017 tax cuts through Fiscal Year 2035, costing an estimated $4.5 trillion according to the Congressional Budget Office. The Center on Budget and Policy Priorities (CBPP) has criticized this legislation as skewed towards the rich, expensive, and failing to deliver on its promises. The CBPP estimated that the richest households would receive more than triple the tax cuts compared to lower and middle-class households.
It is truly baffling that Johnson is voting for and promoting budget policies that would harm his own constituents. It appears that his voters are unknowingly voting against their own interests. The hypocrisy and disregard for the well-being of the people in his district is both shocking and disappointing.
Here we go again with new tariffs! The stock market took a hit last week, and now some of our closest security partners in the European Union are retaliating with their own trade actions. They are imposing new duties on U.S. industrial and farm products in response to the Trump administration’s decision to increase tariffs on steel and aluminum imports to 25%.
The EU’s measures will affect goods from the United States worth a staggering 26 billion euros ($28 billion). These tariffs won’t just target steel and aluminum products, but also textiles, home appliances, and agricultural goods. Specifically, they are aimed at products made in Republican-held states, such as beef and poultry from Kansas and Nebraska, and wood products from Alabama and Georgia. So, MAGA world, get ready to pay the price for your misguided support of Trump.
The new tariffs will cost companies billions of dollars and increase uncertainty in two of the world’s major trade partnerships. Companies will either absorb the losses and see reduced profits, or more likely, pass the costs on to consumers in the form of higher prices. This will lead to increased prices in both Europe and the United States, putting jobs at risk.
Is this really what voters expected? It’s time to rethink our trade policies and work towards mutually beneficial agreements. Let’s prioritize job creation, economic growth, and stability for all parties involved.
Maybe tell Trump to retake Economics 101 because he really has not got a clue.
We have become accustomed to President Trump’s falsehoods, but some may attribute his inaccuracies to his age and forgetfulness. One such instance is the dairy agreement he supposedly made with Canada during his last term in office.
These high tariffs only apply after the US surpasses a specific quantity of tariff-free dairy sales negotiated by (in his first term) Trump each year. The US dairy industry itself acknowledges that the US has not reached its allowed zero-tariff maximum in any dairy product category, including milk!
Furthermore, President Trump falsely asserted that Canadian dairy tariffs increased under President Biden’s administration. In reality, official Canadian documents and industry groups on both sides of the border confirm that Canada did not raise its dairy tariffs under President Biden. The tariffs Trump criticized were actually maintained by the United States-Mexico-Canada Agreement (USMCA), a trade deal negotiated and signed by Trump in 2018.
The US Department of Agriculture website notes that under the previous North American Free Trade Agreement (NAFTA), almost all US agricultural exports to Canada faced no tariffs or quotas. The USMCA preserved this zero-tariff, zero-quota trade while providing greater US access to select Canadian markets governed by supply management.
Canada is the second-largest export market for US dairy products, with approximately $1.1 billion in sales in 2024. Trump seems to forget or maybe it’s just he can’t remember?
Trump, the man of promises. He pledged to fix the economy, lower inflation, and even promised cheaper eggs. Well, surprise, surprise – prices are up, and the only thing going down is the stock market. It’s like a magic trick, but instead of pulling a rabbit out of a hat, we’re pulling our hair out over the economy.
The signs of economic weakness are as clear as day, with surveys showing increased pessimism and indicators suggesting the U.S. economy might be shrinking. But fear not, for Trump is here to reassure us with his vague statements about wealth and transition. It’s all a part of the grand plan, apparently. Just give it a little time, folks.
And let’s not forget the companies feeling the pinch of our economic woes. Carnival and United Airlines are taking hits, as people tighten their purse strings and opt for staycations over cruises. Thanks, Trump, for making America’s economy great again.
So, to all those who voted for Trump thinking he was the answer to our economic prayers – congratulations, you played yourself. Turns out, snake oil salesmen don’t make the best presidents.
Unlike other federal agencies, cutting the IRS results in less money collected and fewer tax abuses uncovered. Economic studies have shown that for every dollar spent by the IRS, the agency returns between $5 and $12, depending on the taxpayer’s declared income. A 2024 report by the nonpartisan Government Accountability Office revealed that the IRS saved $13,000 for every additional hour spent auditing the tax returns of wealthy taxpayers – a return on investment that would make Wall Street hedge fund managers jealous, according to the Institute on Taxation and Economic Policy.
The Trump administration’s strategy to shrink the government has been haphazard and widespread, aiming to remove civil servants quickly from as many agencies as possible while demoralizing those who remain. ProPublica discovered that the recent IRS layoffs included highly skilled probationary workers who had recently joined the government or moved from another agency.
In late February, the Trump administration began firing over 6,000 IRS employees. The agency has been hit hard because it spent 2023 preparing to hire thousands of new enforcement and customer service personnel, only beginning to hire and train them on a large scale in 2024. “Large businesses and wealthy individuals, “like Trumps friends”, are where you find the most sophisticated taxpayers, tax preparers, and lawyers who push the boundaries as much as possible. Well we could guess he wants to protect them not the middle class.
Blue Press Journal 