How Trump’s Disastrous Tariffs Are Dragging Down the U.S. Economy

Despite campaign promises to improve the economy for everyday Americans, Trump’s start-and-stop tariffs have plunged the economy into chaos — driving up living costs for millions of families, risking thousands of U.S. jobs, and undercutting businesses of all sizes.

Trump’s tariffs — one of the most harmful and chaotic economic policies in recent memory — are the top reason why Americans disapprove of his foreign policy. Among Democrats and Independents, tariffs are the most important foreign policy issue right now.

Latest Polling:

• More than half of Americans — 60%, including two-thirds of Independents — disapprove of Trump’s tariffs and trade policies. Even 30% of Republicans disapprove of the president’s trade policy. Among all voters, Trump has a 25-point net negative rating on how he’s dealing with tariffs and trade.

• The vast majority of American adults (89%) expect Trump’s tariffs to raise prices.

  • More than half of U.S. adults think the tariffs will cost the U.S. more money than it brings in from other countries, both in the short (70%) and long (62%) terms.

  • A majority of Americans (58%) responded that tariffs would hurt the U.S. economy and that Trump’s economic policies would increase inflation.

The Facts:

Bad for Consumers: Trump’s tariffs are raising prices on everything — from groceries to automobiles. Companies are expected to pass more than half of their tariff costs onto consumers, with some willing to pass over 90% of the added costs onto shoppers.

• Groceries: The U.S. imported over $200 billion worth of food in 2024. Many of these products — from bananas to coffee beans — cannot be easily grown in the U.S. Even a 10% tariff adds up to billions of dollars in extra costs for families nationwide.

• Cars: Trump enacted a 25% tariff on imported vehicles, plus a 25% tariff on auto parts — not to mention a 50% tariff on steel and aluminum. Experts warn that Trump's tariffs could raise prices by $10,000 per vehicle.

Bad for Businesses: The tariffs are hurting — not helping — U.S. companies, including in manufacturing.

• Retaliatory tariffs by other countries are hitting hundreds of billions of dollars in U.S. exports, hurting U.S. companies and workers across industries — from agriculture to manufacturing.

• There are fewer manufacturing jobs now than when Trump took office. Trump’s tariffs are raising material costs for U.S. manufacturers — including a whopping 50% tariff on steel and aluminum, hitting U.S. companies making everything from cars to planes to cans.

Bad for Markets:

• The U.S. economy shrank in the first quarter of 2025 — the first time in three years. Trump’s on-again, off-again tariffs are causing panic, creating unnecessary uncertainty, and forcing companies to push off investment and hiring decisions.

• The U.S. dollar had its worst start to the year in over five decades, dropping more than 10% in value since Trump took office. A weaker U.S. dollar means less buying power for millions of Americans — in other words, the same products will cost families even more.

Key Messages:

• Trump’s Tariffs Are Raising Prices: After claiming he would lower prices for Americans, he’s doing the exact opposite. His reckless tariffs are a ticking time bomb for the economy — driving up inflation, squeezing working Americans, and hurting U.S. businesses.

• Trump’s Approach = Chaos: There’s a strategic way to use tariffs, and then there’s Trump’s way: inconsistent, disorganized, and doomed to backfire. His approach is economic self-sabotage disguised as “tough talk.”

• All Talk, No Results: Instead of “90 deals in 90 days”, Trump has only made five partial deals — with China, Indonesia, Japan, the United Kingdom, and Vietnam. Once again, the so-called “master negotiator” has failed to strike the groundbreaking deals he promised to the American people. 

• Americans Pay the Price: Trump’s tariffs have the potential to hit over 70% of U.S. trade. And who’s paying the price? The American people, already stretched thin, are feeling the pain trying to buy groceries, replace broken appliances, or keep their business open.

• Not Just Short-Term Pain: Trump claims that the economic pain will be temporary, but the consequences — higher prices, fewer jobs, and a weaker U.S. economy — will last for years to come. In a matter of months, Trump is tanking America’s longstanding economic relationships and reputation, wreaking havoc and damage that cannot be easily reversed. As the U.S. withdraws from international trade, the rest of the world is deepening ties and moving on without us.

Published: July 2025