Families face higher prices and a struggling job market, while Trump’s policies line the pockets of the wealthy
The latest round of economic data shows Donald Trump’s tariff tax is dragging down the entire U.S. economy and directly hurting businesses, workers, and American households just trying to get by.
The Conference Board’s Leading Economic Index (LEI) declined by 0.1% in July – the seventh straight month that LEI has declined. In addition, LEI’s six-month growth rate remains negative, triggering a recession signal for the second straight month.
The Philadelphia Fed’s August manufacturing survey showed general activity plummeted from 15.9 to -.03 from last month, new orders fell, and shipments slumped. Manufacturing firms also reported a median increase of 3.5 percent in their own prices over the past year, up from 3.0 percent last quarter.
Jobless claims rose last week to 235,000, the highest level since June, and continuing claims climbed up to levels not seen since the height of the pandemic in November 2021.
“Families aren’t seeing the growth or prosperity Trump promised. They’re seeing higher prices and fewer job opportunities while Trump hands out tax breaks for the rich and obsesses over a taxpayer-funded ballroom for his billionaire friends,” said American Bridge 21st Century spokesperson Brandon Weathersby.
As prices soar and the job market stalls, experts are calling out the harmful effects Trump’s policies are having on nearly every aspect of the American economy. Here’s what they’re saying:
Yale School of Management: Trump’s Tariff Tantrums Are Hobbling the U.S. Economy.
“Ultimately, most companies substantially impacted by the tariffs will need to share the cost burden with consumers. The average direct cost to consumer households is approximately $2,400, according to estimates. Other costs are more indirect, such as a slowdown in hiring plans, particularly among small businesses. The actual effects of Trump’s economic agenda are becoming more evident in the latest economic reading. A marked slowdown in private business investment and consumer spending occurred, with growth dropping to 1.2% from 1.9% last quarter.”
Goldman Sachs: U.S. households absorbed 22 percent of tariff costs through June, projected to rise to 67 percent by October
“US companies have so far taken the bulk of the hit from Trump’s tariffs but the burden will increasingly be passed on to consumers as companies hike prices, economists including Jan Hatzius wrote in a note. Consumers in the US have absorbed an estimated 22% of tariff costs through June, but their share will rise to 67% if the latest tariffs follow the pattern of levies in previous years, they wrote. The net result: faster inflation.”
Morgan Stanley: The Coast Is Not Clear on Tariffs
“While it’s still too early to assess the full impact of tariffs, a closer look at recent inflation data may raise flags: For starters, goods prices, excluding auto, food and energy, jumped 0.5% in June, the fastest rise in three years. Analysts at Pantheon Macroeconomics reported price hikes on China-linked imports like appliances, toys and electronics of more than 2% in the month. They note that tariff impacts are also showing up in food prices, with fruit, beef and vegetables all up more than 1%.”
Published: Aug 21, 2025