President Donald Trump may be patting himself on the back by putting 25 percent tariff on India, but this decision can cause trouble for the Americans. With this decision, the income of every house can be reduced by Rs 2 lakh. Not only this, fear of economic recession and jobs has also arisen in the country. A research report of Yale University has expressed concern over this. The report warns that by imposing more tariffs on allied countries like India and South Korea, Americans will suffer heavy losses, which will increase domestic expenses and will cause recession in economic growth.
According to the report, due to Trump’s tariff, the income of every American family can be reduced on an average $ 2,400 (about ₹ 2 lakh). These disadvantages of Americans will be due to the rise in prices of rich people used everyday, which will become expensive due to tariffs. The report believes that the US Federal Reserve will not take any steps to prevent this inflation, so the loss will be due to inflation, not due to low salary. In Yale’s researchers, “The average tariff on the affected products due to Trump’s tariff has increased to 18.4%, which is the highest since 1930.”
The poor will have the most impact
The tariff will affect the poor families of America the most. Because due to tariffs, essential things such as shoes, bags, clothes, medicines and food items will become expensive. The rich families will suffer more damage in the dollars, but their burden will be much heavy in proportion to the income of the poor. On average, poor families would lose $ 1,300 (more than ₹ 1 lakh), which is three times more than the rich. The rich families are estimated to lose $ 5,000, but it will not be very effective for them. Leather goods such as shoes and bag prices can rise by 40%. Clothing prices can be expensive up to 38%. Food prices can be expensive up to 7%. Simply put, Trump’s tariff can make the life of common American families quite expensive, especially for those who are already facing financial troubles.
Recession and jobs in America threatened
The report also states that the effect of these tariffs will not be limited only to inflation, but will also be on the entire economy of America. If these tariffs continue, in 2025-26, America’s GDP growth can be reduced by 0.5% and 5 lakh jobs can be done by the end of the year. The unemployment rate is estimated to increase by 0.3% in 2025 and this pressure may remain till 2026. In a separate report, JP Morgan has also confirmed that tariffs are increasing inflation, due to which the demand of consumers is decreasing and GDP growth is slowing down. Although the government will have an estimated $ 167.7 billion income in 2025 from tariffs, economists say that its loss is much more than this.