On April 16, US President Donald Trump posted on social media, claiming that his tariff policies had simultaneously brought America "record-high revenues" and "lowered prices for nearly all goods." However, the reality appears to contradict his statements, with recent data painting a starkly different picture.
According to the US Customs and Border Protection, since April 5 when the latest round of tariffs was implemented, only US$500 million in tariff revenue has been collected. In stark contrast, US stock markets have suffered catastrophic losses. From April 2—when Trump announced the new "reciprocal tariffs"—to now, the total market value of US stocks has plummeted by over US$4 trillion, roughly equivalent to 14% of the country's GDP. This means that while the US government gained US$500 million in tariffs, American investors lost US$4 trillion—an 8,000-fold disparity.
The announcement triggered what Wall Street insiders have described as an "epic sell-off," marking the worst market downturn since 2020. A survey by Bank of America revealed that 82% of fund managers believe the tariffs could lead to a recession. Goldman Sachs has placed the probability of a US recession within the next year as high as 65%, while JPMorgan's analysis predicts a 60% chance of economic contraction.
While the White House insists that the tariff war targets foreign nations, economists argue that the real burden falls on American importers. The hardest hit, however, are US stock market investors. With 30% of American household assets tied to stocks, and retirement funds heavily reliant on market growth, the fallout from tariffs is eroding the financial security of everyday Americans.
The impact of the tariff war extends beyond stock portfolios to supermarket shelves. According to a report from logistics data company Vizion, overall US imports fell by 64% in the first week of April. Apparel and accessories imports dropped by 59%, while wool, fabric, and textile imports declined by 57%. This combination of shrinking consumer purchasing power and dwindling product availability is driving up prices. A Yale University study shows that to maintain last year's consumption levels, the average American family would need to spend an additional US$4,900 annually.
(Source: CCTV)
Related News:
US stock funds 'out of favor': MPF sees net outflow of nearly HK$6 bn
Tariff hikes force Temu and Shein to raise prices for US customers
Comment