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- Why trumps plan will not work:(
Why trumps plan will not work:(
Many of us who are not econmic masters are asking this so here is why
Trump has been slapping tarrifs on everyone so why is his plan failing?Here is why:
President Trump's tariff plan was designed to protect American industries and reduce the trade deficit by placing taxes on imported goods. However, it ended up raising prices for U.S. businesses and consumers. Many companies rely on imported materials, so when tariffs increased their costs, those higher prices were passed on to shoppers, making everyday goods more expensive.
Other countries, especially China, hit back with tariffs of their own on American products. This hurt U.S. exporters, especially farmers and manufacturers, whose goods became harder to sell overseas. The back-and-forth made trade uncertain and caused big swings in the stock market, which worried investors and raised fears of a possible recession.
Despite the bold approach, the tariffs didn’t significantly shrink the U.S. trade deficit. The structure of the U.S. economy — especially how much it imports — made it hard for tariffs alone to change that. With economic pressure building, Trump recently paused new tariffs for 90 days, hoping to ease tensions and avoid further damage.