The Economic Effects of President Trump's Tariffs
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The Penn Wharton Budget Model projects that President Trump's tariffs will reduce long-run GDP by 6% and wages by 5%, with a significant lifetime loss for middle-income households, sparking discussion on the economic effects of protectionist policies.
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Nov 5, 2025 at 5:46 AM EST
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Trump has sown chaos by altering tariffs on a whim, and that messes up the economy worse than predictably high tariffs. Businesses can function under high tariffs, but if tariffs change and there is constant uncertainty, low-margin businesses can make profits only by accident.
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