Under Trump's Tariff Blitz, the U.S. Faces Rising Prices, Weakening Dollar, and Threatened Businesses

Under Trump’s Tariff Blitz, the U.S. Faces Rising Prices, Weakening Dollar, and Threatened Businesses

Written by Caio Aviz

Published on 04/09/2025 at 18:36

Donald Trump em destaque, com gráfico de queda e dólar ao fundo, representando tensão econômica nos Estados Unidos

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The Impact of Trump’s Tariffs and How They Affect the American Economy

Since February 2025, when Donald Trump initiated his new round of tariffs, the effects of the tariffs have begun to spread throughout the U.S. economy.

Small businesses, consumers, tax revenues, and even the U.S. dollar are already feeling direct impacts. The official data is from the U.S. Chamber of Commerce.

The analyses were updated on September 3, 2025, by columnist Diogo Schelp from Veja, reinforcing the dimension of the economic effects. See below the impacts the U.S. has been facing:

ARTICLE CONTINUES BELOW

Small Businesses Suffer Losses and Investments Decline

Since April, about 240,000 American businesses that rely on imports have already recorded average losses of US$ 90,000. The figures are from the U.S. Chamber of Commerce.

The estimate is that, by December, the average impact will reach US$ 856,000 per company. The increase directly reflects the financial fragility of these businesses.

Moreover, revenue dropped 13% in June, while private investment contracted 13.8% in the second quarter. The decline has affected the confidence of the production sector.

As a result, hiring has been delayed and the labor market has lost dynamism. The scenario generates caution and compromises future economic growth.

Trade Deficit Grows Instead of Receding

Despite Trump hoping to reduce the deficit, the result was the opposite. In July, the U.S. trade deficit rose 22.1% compared to the previous year.

The 7.1% increase in imports fueled this advance, while exports fell only 0.1% in the same analyzed period.

To avoid greater losses, companies anticipated purchases before the tariffs went into effect in April. Additionally, many redirected suppliers to other countries.

Imports of Chinese goods, for example, fell 48% in June 2025 compared to the same month of the previous year, according to surveys.

Cost of Living Rises with More Expensive Cars, Meat, and Toys

American consumers are also feeling the effects on their wallets. The average price of cars manufactured in the U.S. is expected to rise 14% by the end of 2025.

The increase is compounded by higher financing interest rates, which have gone from 6.6% to 7%. The average increase will be US$ 400 per vehicle.

Furthermore, the price of ground beef rose 12.8% in July compared to January. The reason is the smaller herd, strong demand, and tariffs.

The tariffs were 10% on imports from countries like Brazil and Australia. This directly raised the cost of the product for Americans.

Moreover, toys became 3.7% more expensive in just four months. The increase resulted from the tariffs on Chinese products, imposed in April.

Revenue Grows, but Does Not Cover Tax Cuts

The tariffs added US$ 65 billion to revenue between April and June, so the growth immediately shows the effect of the measure on public accounts.

If this pace continues, the extra revenue could reach US$ 189 billion by the end of the year; however, this amount is still insufficient.

In addition, Trump’s fiscal plan includes cuts that will cost US$ 590 billion annually, as the figure is much higher than the gain obtained from tariff surcharges.

Dollar Loses Strength and Confidence in the Economy Declines

From the beginning of 2025 until September, the dollar fell nearly 10% against a basket of foreign currencies. Thus, the currency lost competitiveness rapidly.

At the same time, the decline was accompanied by strong volatility in long-term government bonds. Additionally, the instability caused a significant capital outflow.

As a result, this movement signals growing distrust in the American government’s fiscal management.
Thus, the perception affects both domestic and foreign investors.

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Under Trump’s Tariff Blitz, the U.S. Faces Rising Prices, Weakening Dollar, and Threatened Businesses

The Impact of Trump’s Tariffs and How They Affect the American Economy

Small Businesses Suffer Losses and Investments Decline

Trade Deficit Grows Instead of Receding

Cost of Living Rises with More Expensive Cars, Meat, and Toys

Revenue Grows, but Does Not Cover Tax Cuts

Dollar Loses Strength and Confidence in the Economy Declines

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Under Trump’s Tariff Blitz, the U.S. Faces Rising Prices, Weakening Dollar, and Threatened Businesses

The Impact of Trump’s Tariffs and How They Affect the American Economy

Small Businesses Suffer Losses and Investments Decline

Trade Deficit Grows Instead of Receding

Cost of Living Rises with More Expensive Cars, Meat, and Toys

Revenue Grows, but Does Not Cover Tax Cuts

Dollar Loses Strength and Confidence in the Economy Declines

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

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China opens the world’s first school where more than 100 humanoid robots from different brands will study together, each movement will be repeated up to 600 times a day and the data will feed a collective brain that will teach all the robots of the future.

Cambodia has started digging a nearly 180-kilometer canal to connect the Mekong River directly to the sea and reduce its dependence on the ports of neighboring Vietnam.

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