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The trade policies appear to have worsened the economic landscape. According to the Tax Foundation, the tariffs have increased costs on the average American by about $1,000 annually, a figure projected to rise to $1,300 next year. The economy’s growth rate slowed from 2.8% in 2024 to just 2.2%, marking its slowest expansion since the pandemic years.
Consumer Financial Strain and Spending Trends
Additional troubling signs include the decline in the personal savings rate to its lowest level since 2022, indicating that Americans are increasingly dipping into their savings just to cover basic expenses like food, gas, and healthcare. This financial strain predates the full impact of tariffs but signals a deteriorating economic environment.