GDP Reductions, Employment Declines: The Effects of Trump's Tariffs Shown in Statistics and "Quotes"
CGTN has gathered data and insights regarding the potential effects of Trump's tariffs, presenting key statistics and relevant quotes.
TroibNews 
On Saturday, U.S. President Donald Trump signed an executive order that imposes a 25-percent additional tariff on imports from Canada and Mexico, alongside a 10-percent tariff increase on imports from China, which will take effect on February 4.
In response, Canada has declared its intention to impose a 25-percent levy on C$30 billion worth of American products starting Tuesday, with an additional levy on C$125 billion of goods set to occur in 21 days. Mexican President Claudia Sheinbaum has promised to enact both tariff and non-tariff measures to safeguard Mexico's economic interests. Meanwhile, China’s Ministry of Foreign Affairs, Ministry of Commerce, and Ministry of Public Security have expressed strong opposition to the U.S. tariffs, citing concerns related to fentanyl. China announced plans to lodge a complaint with the WTO and implement countermeasures to protect its rights and interests.
The recent U.S. trade protectionism has generated significant opposition. Analysts have cautioned that these sweeping tariffs and the anticipated retaliatory measures may lead to inflation, increase consumer prices, result in job losses in the U.S., and disrupt global economic stability.
CN has outlined potential impacts of Trump's tariffs using both data and quotes.
**Economic Implications: GDP Declines, Price Increases, and Job Losses**
A report from the Tax Foundation, a U.S. think tank, released on January 31 projects that the 25 percent tariffs on Canada and Mexico, and the 10 percent tariffs on China would reduce U.S. GDP growth by 0.4 percent and increase taxes by $1.2 trillion from 2025 to 2034, equating to an average tax increase of over $830 per U.S. household in 2025.
According to EY Chief Economist Greg Daco's economic model, Trump's tariff strategies could diminish U.S. economic growth by 1.5 percentage points this year, potentially leading Canada and Mexico into recession and creating "stagflation" in the U.S., as reported by Reuters.
The Canadian Chamber of Commerce has highlighted concerns that implementing 25-percent tariffs and full retaliation might cause a 2.6-percent contraction in Canada's real GDP, costing households an average of C$1,900 each year. In the U.S., GDP could decrease by 1.6 percent, with an average household impact of $1,300.
Mexican President Claudia Sheinbaum previously remarked that Trump's tariffs could result in the loss of 400,000 U.S. jobs and escalate consumer prices for Americans.
The World Bank warned in mid-January that a broad 10-percent tariff increase by the U.S. could further reduce the already meager global economic growth – projected at 2.7 percent for 2025 – by 0.3 percentage points, should America’s trading partners respond with retaliatory measures.
A study from January 2021 by the U.S.-China Business Council indicated that trade policies during Trump's initial term led to a loss of 245,000 American jobs.
**"Dumbest trade war in history"**
On January 31, The Wall Street Journal editorial board characterized the tariffs imposed by the Trump administration on Canada, Mexico, and China as "the dumbest trade war in history."
The editorial commented, "Mr. Trump sometimes sounds as if the U.S. shouldn’t import anything at all, that America can be a perfectly closed economy making everything at home."
It further stated that the tariffs "remind us of the old Bernard Lewis joke that it’s risky to be America’s enemy but it can be fatal to be its friend."
Friedrich Merz, the chairman of the German Christian Democratic Union, cautioned that "Tariffs have never been a good idea to resolve trade policy conflicts," warning that rising import costs would likely lead to backlash in the U.S. and impact American consumers significantly.
A spokesperson for the Chinese Foreign Ministry stated on Sunday, "There is no winner in trade and tariff wars," noting that the U.S.'s unilateral tariff increases significantly violate WTO regulations. The spokesperson emphasized that such measures would not address domestic economic issues in the U.S. and would not yield benefits for either side, let alone the global economy.
Mathilde Moreau contributed to this report for TROIB News
In response, Canada has declared its intention to impose a 25-percent levy on C$30 billion worth of American products starting Tuesday, with an additional levy on C$125 billion of goods set to occur in 21 days. Mexican President Claudia Sheinbaum has promised to enact both tariff and non-tariff measures to safeguard Mexico's economic interests. Meanwhile, China’s Ministry of Foreign Affairs, Ministry of Commerce, and Ministry of Public Security have expressed strong opposition to the U.S. tariffs, citing concerns related to fentanyl. China announced plans to lodge a complaint with the WTO and implement countermeasures to protect its rights and interests.
The recent U.S. trade protectionism has generated significant opposition. Analysts have cautioned that these sweeping tariffs and the anticipated retaliatory measures may lead to inflation, increase consumer prices, result in job losses in the U.S., and disrupt global economic stability.
CN has outlined potential impacts of Trump's tariffs using both data and quotes.
**Economic Implications: GDP Declines, Price Increases, and Job Losses**
A report from the Tax Foundation, a U.S. think tank, released on January 31 projects that the 25 percent tariffs on Canada and Mexico, and the 10 percent tariffs on China would reduce U.S. GDP growth by 0.4 percent and increase taxes by $1.2 trillion from 2025 to 2034, equating to an average tax increase of over $830 per U.S. household in 2025.
According to EY Chief Economist Greg Daco's economic model, Trump's tariff strategies could diminish U.S. economic growth by 1.5 percentage points this year, potentially leading Canada and Mexico into recession and creating "stagflation" in the U.S., as reported by Reuters.
The Canadian Chamber of Commerce has highlighted concerns that implementing 25-percent tariffs and full retaliation might cause a 2.6-percent contraction in Canada's real GDP, costing households an average of C$1,900 each year. In the U.S., GDP could decrease by 1.6 percent, with an average household impact of $1,300.
Mexican President Claudia Sheinbaum previously remarked that Trump's tariffs could result in the loss of 400,000 U.S. jobs and escalate consumer prices for Americans.
The World Bank warned in mid-January that a broad 10-percent tariff increase by the U.S. could further reduce the already meager global economic growth – projected at 2.7 percent for 2025 – by 0.3 percentage points, should America’s trading partners respond with retaliatory measures.
A study from January 2021 by the U.S.-China Business Council indicated that trade policies during Trump's initial term led to a loss of 245,000 American jobs.
**"Dumbest trade war in history"**
On January 31, The Wall Street Journal editorial board characterized the tariffs imposed by the Trump administration on Canada, Mexico, and China as "the dumbest trade war in history."
The editorial commented, "Mr. Trump sometimes sounds as if the U.S. shouldn’t import anything at all, that America can be a perfectly closed economy making everything at home."
It further stated that the tariffs "remind us of the old Bernard Lewis joke that it’s risky to be America’s enemy but it can be fatal to be its friend."
Friedrich Merz, the chairman of the German Christian Democratic Union, cautioned that "Tariffs have never been a good idea to resolve trade policy conflicts," warning that rising import costs would likely lead to backlash in the U.S. and impact American consumers significantly.
A spokesperson for the Chinese Foreign Ministry stated on Sunday, "There is no winner in trade and tariff wars," noting that the U.S.'s unilateral tariff increases significantly violate WTO regulations. The spokesperson emphasized that such measures would not address domestic economic issues in the U.S. and would not yield benefits for either side, let alone the global economy.
Mathilde Moreau contributed to this report for TROIB News
