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2025 US TARIFF WAVE: STRATEGIC SHIFT OR ECONOMIC STRAIN?

This year, U.S. trade policy took a sharp protectionist turn.

Between February and August, tariffs jumped substantially.
The result? A "stagflation-lite" environment: slower growth, rising costs, uncertainty for businesses and many others downsides including but not limited to:

  • GDP declining (job losses could reach ~500,000, unemployment up 0.3 points).
  • Manufacturing gains (~2%) offset by declines in construction, agriculture, and mining.
  • Auto industry hit hard, profits down 37% at Toyota; sector losses near $12B.
Consumers seeing higher prices on electronics, apparel, and furniture. In my opinion, these 2025 tariffs may bolster certain domestic manufacturing efforts (e.g., semiconductors, steel), but the broader economic cost (including slower growth, diminishing jobs, higher consumer prices, and disrupted supply chains) is substantial.

Adaptation for US businesses is critical, they need to rethink supply chains, sourcing, and pricing strategies to stay competitive.

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