US Tariffs Causing Economic Mayhem

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US Tariffs Causing Economic Mayhem

As President Trump once again unexpectedly announced tariffs on the United States’ biggest trade partner, the American economy is beginning to show signs of serious damage from the fallout of his demands.

New figures from the US Department of Labour show that the ongoing trade war between the United States and China is heavily affecting its workers, with new employment figures taking a dramatic turn downwards from 224,000 new jobs in April to just 75,000.

Analysts are suggesting that this comes from uncertainty with hiring organisations who are reluctant to put money into employment when the stipulations could change at any moment.

Other Red Flags

This halting unemployment figure is just another red flag for the US economy, which has been showing signs of serious strain for the last two years.

Though unemployment remains at a record low of 3.6%, wages have not grown to the extent that was predicted by economists – another sign that the economy is struggling.

These tariffs, which are often communicated by the President erratically and seemingly without White House approval, have hit the manufacturing and construction industries the hardest, who reported the weakest job growth numbers in many months.

These companies, who rely heavily on trade to run, are the most susceptible to growing tensions between counties, and the President’s erratic misunderstanding of tariffs are threatening to make things even worse.

Trade Wars Remain

Despite courting the leaders of the manufacturing and construction industries during his campaign, the President is continuing to lead the US to an increasingly dangerous trade war.

His disputes with China have yet to be resolved and on Monday, he announced a 5% tariff on goods coming in from Mexico, even threatening to raise it weekly in a press conference this week. Business leaders and economists alike are growing increasingly concerned about the President’s demand for higher tariffs, particularly that he may not understand the implications they have on American businesses.

Large US-based companies including retailer Walmart, car manufacturer Ford and GM have continually warned the President about the dangers of tariffs. Many have stressed that, should the President continue to wildly demand tariffs, the US would suffer significantly over their foreign allies.