Part 7/9:
Tariffs on imports from countries like Canada, Mexico, and China risk a retaliatory cycle, endangering the economic fabric by making goods more expensive for everyone. The reality is that consumers bear the brunt of these increased prices, ultimately diminishing their spending power and inviting recession-like conditions.
The Perils of Retaliation: An Economic Tug-of-War
As the U.S. leverages tariffs against major suppliers, there lies an inherent risk of igniting a trade war that would hurt not just those nations but American consumers as well. These dynamics establish a lose-lose scenario wherein consumers pay higher prices, businesses face reduced demand, and foreign trade partners retaliate with their own tariffs.