Trump’s ‘Golden Age’ Economic Promise: How His Tariff Plan Could Impact Your Wallet

As President Trump hits the milestone of 100 days in office, the economic outlook isn’t great. Economic growth is slowing, stock markets are down, and consumer confidence has hit a low not seen since the COVID-19 pandemic began.

The latest figures from the Commerce Department show that the gross domestic product (GDP) grew much slower in the first quarter of the year compared to late 2024. This report includes data from both the last weeks of the Biden administration and Trump’s early days, marking the start of a new trade war.

One reason for the slower growth is a surge in imports as businesses prepared for Trump’s new tariffs. Increased imports negatively impact GDP, highlighting the dilemma many businesses face. Mark Zandi, Chief Economist at Moody’s Analytics, noted that consumer spending has also slowed compared to the robust growth seen at the end of last year. “Consumers are still driving the economy, but with less enthusiasm,” he said.

Consumer confidence is shaky. An index from the Conference Board has dropped for five straight months, and tariffs have become a top concern, surpassing inflation. Many survey respondents fear that import taxes will raise prices and could lead to a recession. Zandi warns that loss of job security can lead to reduced spending and economic downturns.

Despite a low unemployment rate of 4.2%, concerns about job stability are the worst since 2009, during the last major economic crisis. The stock market has also contributed to a decrease in confidence, with the S&P 500 down 7.3% since Inauguration Day.

Businesses are feeling the pressure, too. Trump’s tariffs include a 10% tax on nearly all U.S. imports and steep tariffs on many items from China. Small business owner Curt Carpenter has found these tariffs harder on his company than the 2008 housing crisis. He imports most of his lighting fixtures from China and claims, “it’s just a tax on the end consumers.” He feels like he’s losing sales opportunities without any direct competition; the barriers are simply rising costs.

On the flip side, not every business dislikes the tariffs. Tom Barr, a mold maker in Michigan, has seen interest from potential clients in bringing work back to the U.S. Since the tariffs took effect, he’s received inquiries from companies like Ford Motor Company. “Without these tariffs, those conversations wouldn’t have happened,” he admitted. However, Barr believes tariffs should be more targeted to help domestic producers without hurting the overall economy.

As this economic narrative unfolds, it’s clear that the effects of these policies are complex. Understanding the balance between protecting local businesses and ensuring affordable consumer prices is crucial for future growth.

For more details on consumer confidence trends, you can visit the Conference Board.

Check out this related article: How Trump’s Tariffs Are Impacting China’s Factories: A Deep Dive into Economic Fallout