Trump Tariff: Will Inflation Rise and Jobs Decrease in America? How Will Average American Be Impacted? Will U.S. GDP Shrink?"
US President Donald Trump has announced to impose 50% tariff on India. The average tariff rate in America has gone up to 18.3%. This is the highest in 100 years. Earlier in 1909, the average tariff rate in America was 21%.
Due to higher tariffs, American families will have to bear an average extra expenditure of $2400 (Rs 2 lakh) this year. The foreign goods that they were buying earlier for $100, now they will have to pay $118.3.
Economists say that in the coming times, the prices of those things in America which use steel and aluminum, like refrigerators or washing machines, will increase even more. The foreign goods that they were buying earlier for $100, now they will have to pay $118.3.
In the coming times, the prices of those things in America which use steel and aluminum, like refrigerators or washing machines, will increase even more.
The tariffs can cause America's GDP to fall by 0.5%. This means that America's $28 trillion economy will lose $140 billion in a year. In Indian rupees, it is 11.6 lakh crores.
The tariff will also affect food items. Bananas and coffee are not grown in sufficient quantities in America, so their prices will increase. Fish, beer and wine will also be affected by inflation.
Trump claims that the tariff will strengthen the economy, but experts believe that it will increase inflation and reduce jobs.
Jobs will decrease
According to recently released government data, only 73,000 new jobs were added in July. According to the government's estimate, 1.09 lakh new jobs were expected to be added. Jobs also declined in May and June. This led to an average of 35,000 jobs being added per month in a quarter. This is the lowest figure since 2010.
Angered by this figure, Trump fired Bureau of Labor Statistics Commissioner Erica McEntire on August 1. Trump alleged that the report had been manipulated for "political purposes."
Prakash Kumar Pandery