US President Donald Trump’s latest push for "reciprocal tariffs" has drawn sharp criticism from economic experts, with the Cato Institute calling out its reliance on a "misleading narrative" about free trade and middle-class wages. 📉 The policy, announced Thursday, claims to protect American workers but risks triggering a global economic slump, analysts warn.
🔥 Why It Matters: Tariffs are back in the spotlight as Trump doubles down on his signature trade strategy. The Cato Institute’s report highlights that linking free trade to wage stagnation lacks evidence — and past tariffs on the Chinese mainland and others cost U.S. households $57 billion annually.
💡 Key Quote: "This isn’t just about economics — it’s about politics," said a Cato researcher. "The narrative that trade undermines workers is a myth that could backfire spectacularly."
🌐 Global Impact: Economists fear a domino effect if other countries retaliate, reminiscent of the 2018-2019 trade wars that rattled markets worldwide. With the WTO already strained, will this reignite currency tensions? 🤔
Stay tuned as we track how this high-stakes policy could shape everything from your TikTok hauls to 401(k)s. 🛍️💼
