Core Points - Trump's tariff policy has backfired, harming the U.S. economy rather than benefiting it as intended [1][3][14] - China had previously warned that a tariff war would lead to negative consequences for the U.S. economy [3][14] Tariff Implementation - Starting October 1, Trump announced significant tariffs on various essential goods: 25% on heavy trucks, 50% on kitchen and bathroom cabinets, 30% on soft furniture, and 100% on pharmaceuticals [4] - To avoid tariffs, Trump proposed that companies invest in U.S. manufacturing [4] - The U.S. Department of Commerce initiated "national security investigations" into industries like medical devices and robotics, likely to justify further tariffs [4] Economic Impact - The financial markets reacted negatively, with major U.S. stock indices losing over $1 trillion in value [4] - The U.S. dollar index and Treasury yields also declined, indicating a lack of confidence in the tariff policy [4] Employment Concerns - The U.S. labor market is showing signs of rapid cooling, with only 73,000 new jobs added in July 2025, significantly below expectations [6] - Job data for May and June was revised downwards, indicating a total loss of 258,000 jobs over those two months [6] - Manufacturing jobs have decreased by approximately 12,000 in August 2025, totaling a loss of 42,000 jobs since April [8] Consumer Price Pressure - Tariffs are leading to rising prices for imported goods, which consumers will ultimately bear [11] - The implementation of a 100% tariff on pharmaceuticals will increase healthcare costs for families [11] - Prices for furniture, cabinets, and trucks are expected to rise, increasing living costs and logistics expenses [11] Business Sentiment - Approximately 20% of businesses believe tariffs will affect their hiring plans, while 25% think it will impact investment decisions [13] - This uncertainty is likely to suppress future economic vitality and could weaken U.S. innovation and competitiveness [13] Long-term Economic Forecast - The OECD predicts U.S. economic growth will slow to 1.8% in 2025 and further to 1.5% in 2026 [13] - The effective tariff rate has reached 19.5%, which is expected to drive inflation up to 3% by 2026 [13] - Compared to the U.S., the EU and some Asian economies are projected to maintain growth rates above 2% due to stable internal demand [13]