President Trump’s economic policy approach is raising concerns across the board. Despite repeated warnings, the president has pressed forward with a strategy that experts say could worsen national debt, harm the economically vulnerable, and deliver far less growth than the White House predicts. On Friday, Trump unveiled a host of new tariff threats, increasing the likelihood of higher prices for American consumers.
This move to escalate the global trade war comes in a week where Trump has ignored warnings that his economic agenda could deepen the nation’s debt, harm his voter base, and deliver far less growth than projected by his administration. In his latest tariff threats, Trump announced 50 percent tariffs on the European Union, along with a 25 percent tariff on Apple. Other tech companies, he warned, could face the same rate.
Trump’s new tariff escalations
Since taking office, Trump has aimed to pair large tax cuts with sweeping deregulation, which he claims will expand the American economy. He posits that his extensive global tariffs will raise revenue, boost domestic manufacturing, and improve U.S. trade relationships.
However, for these policies to be successful, Trump needs to win over investors, especially those purchasing government debt, who currently view his approach skeptically. Bond markets reflect these concerns, as investors remain unconvinced by Trump’s optimistic projections. Where Trump envisions a “golden age” of growth, investors foresee increased debt, higher borrowing costs, inflation, and an economic slowdown.
These investors, who previously saw government debt as a safe investment, are now demanding higher returns to compensate for the perceived risks associated with lending to the U.S.
Trump’s economic strategy continues to be a contentious topic, with many watching to see how these policies will unfold and what the long-term economic impact will be. Despite the tepid reaction of financial markets, Trump chose to revive uncertainties that keep businesses and consumers on edge.
