Hello everyone, here's a quick update on a major economic twist! A recent Yale Budget Lab study finds that U.S. tariffs on imported goods have soared to 18.3% by July 31, 2025 – the highest since 1934. This means that everyday products, from the latest sneakers to trendy apparel, might cost more than you expect.
The study estimates that these tariffs could slow real U.S. GDP growth by 0.5 percentage points in both 2025 and 2026, and push unemployment higher by 0.3 percentage points at the end of 2025 and 0.7 by 2026. For many households, this translates to an average annual increase of about $2,400 in spending. In the short term, prices for shoes might spike by 40% and apparel by 38%, with long-term increases remaining significant.
Additionally, U.S. President Donald Trump recently signed an executive order to adjust tariff rates with 69 trading partners, taking effect on August 7. The new tariffs, ranging from 10% to 40%, have stirred global debate and may impact the cost of everyday items from around the world – including the tech gadgets and fashion pieces popular in our own vibrant markets across South and Southeast Asia. 😎
Global trade is more connected than ever, and shifts like these remind us that policy changes halfway around the world can affect our wallets and lifestyles. Stay tuned for more updates as the global market continues to evolve!
Reference(s):
U.S. consumers hit with highest tariffs since 1934, Yale study finds
cgtn.com
