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US economy Shows Signs of Strain as Trump Tariffs Escalate
Washington D.C. – August 2, 2025 – New economic data released today indicates a slowdown in US job creation and economic growth, coinciding with the implementation of escalating tariffs under the Trump administration. The developments have prompted concern from the Federal Reserve and raised questions about the sustainability of the current economic trajectory.
Who really pays
Despite former President Trump’s repeated assertions that tariffs are paid by foreign countries, extensive research, including studies by the Tax Foundation and the Peterson Institute for International economics, consistently demonstrates that US companies and consumers ultimately bear the cost. These costs manifest as higher prices for goods and reduced purchasing power.
General Motors reported a US$1.1 billion (approximately A$1.7 billion based on current exchange rates) impact from tariffs in the second quarter of 2025, as detailed in their July 22nd earnings report. This figure represents a direct reduction in the company’s profitability.
The imposition of a 50% tariff on semi-finished copper products, effective August 1st, triggered a 13% surge in copper prices on July 9th, according to CNBC reporting.This increase impacts a wide range of industries, including construction, electronics, and automotive manufacturing, ultimately leading to higher costs for consumers. Specifically, the price of copper cathode rose from $4.20/lb to $4.75/lb within 24 hours of the declaration.
The US trade-weighted average tariff rate has climbed to 18.3% as of august 1, 2025, according to data from the Yale Budget lab. This is the highest level since 1934,a dramatic increase from the 2.4% rate in January 2017 when Trump initially took office. This means that, on average, Americans are paying nearly one-fifth more in taxes on imported goods.
The impact is notably noticeable on goods imported from China, mexico, and Canada – key trading partners for the US. Such as, tariffs on steel imports from Canada, implemented in 2018 and maintained under the current administration, have added approximately $500 to the cost of a typical new car
