America Faces the Harsh Reality of Trump’s Tariff Gamble. It has now affecting Americans as the prices of coffee to banana have hot all time high.
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A recent report by Goldman Sachs, the U.S.-based multinational investment bank, paints a troubling picture. The tariffs, once absorbed largely by American companies, are now being passed directly to consumers. Everyday items — from laptops and cars to morning coffee and even bananas — are becoming more expensive.
From March to June 2025, companies bore about 64% of the tariff costs, with consumers shouldering only 22% and exporters 14%. But now, Goldman Sachs warns that 67% of the burden will fall squarely on American households. In simple terms, if a product once cost $12, consumers will now pay $17 for the exact same item. Inflation, which the Federal Reserve aimed to keep at 2%, is now projected to hit 3.2% — a staggering 60% above target.
This inflation surge comes with another dangerous economic condition: stagflation — stagnant growth combined with rising prices. With inflation climbing and GDP growth flatlining, the Federal Reserve cannot cut interest rates, further choking growth prospects. The result: a slowdown in the job market, weakening corporate health, and rising financial strain for millions of Americans.
The July labor report revealed alarming figures:
Manufacturing lost 11,000 jobs.
Retail job losses jumped 250% compared to last year.
53% of U.S. companies across all sectors have cut active job openings.
Manufacturing lost 11,000 jobs.
Retail job losses jumped 250% compared to last year.
53% of U.S. companies across all sectors have cut active job openings.
Unemployment claims have hit nearly 2 million — levels last seen during the COVID-19 crisis in late 2021. Only 73,000 jobs were added in July, far below estimates, pushing unemployment to 5% and raising recession probabilities to 25%.
Goldman Sachs warns that if current trends continue, the long-term impact could shave 0.4% or more off the U.S. GDP. Business Insider goes further, predicting that stagflation is no longer a “what if,” but a “when” — possibly within months.
Goldman Sachs warns that if current trends continue, the long-term impact could shave 0.4% or more off the U.S. GDP. Business Insider goes further, predicting that stagflation is no longer a “what if,” but a “when” — possibly within months.
The irony is clear: Trump’s tariff war, intended to strengthen America’s trade position, is now undercutting its own economy. The pain is no longer distant — it’s hitting American wallets directly.
If the administration does not recalibrate its approach, the U.S. risks walking into a prolonged period of high inflation, job market weakness, and economic stagnation — a trap that even the world’s most powerful economy may struggle to escape.
If the administration does not recalibrate its approach, the U.S. risks walking into a prolonged period of high inflation, job market weakness, and economic stagnation — a trap that even the world’s most powerful economy may struggle to escape.
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