Trump’s tariffs will likely lead to stagnation, not a depression

President Trump’s “Liberation Day” tariffs sent shockwaves through international markets. His across-the-board duty hikes will harm American households and businesses — if they go into effect. And even with the subsequent 90-day pause, the uncertainty makes markets skittish.

Tariffs are taxes, and taxes impede specialization and trade. The U.S. will be poorer as a result of them. Perhaps other nations will negotiate, but they may instead decide to retaliate. That would make the resulting economic pain worse.