What Trump’s trade war means for American families

Stocks are down sharply as Wall Street firms recalibrate their economic growth estimates amid President Trump’s trade war.

Economists predict the new tariffs could lead to increased consumer prices and inflation, potentially costing American households between $3,000 to $5,000 more per year. The White House estimates that tariffs will generate $600 billion over 10 years, but this revenue will come from U.S. consumers, not foreign entities.

This significant transfer of wealth from consumers has raised concerns. The administration plans to use tariff proceeds for tax cuts, a move that may not be well-received by struggling consumers who are living paycheck to paycheck. The economic strain is expected to deepen as consumer prices rise, further impacting household budgets.

Wall Street firms are now forecasting a 50% chance of a recession on the horizon. These estimates are likely to change soon, reflecting the ongoing economic uncertainty. As companies begin to forecast contraction, the potential for a recession becomes more pronounced, adding to the financial pressures faced by American consumers.