● Tariff-Induced Turmoil for US Middle Class
Analysis of the Impact of U.S. Tariff Policies on the General Public and Industries
1. Tariff Imposition and Burden on the General Public’s Economy
Increased tariffs result in importers passing the tariff burden onto consumers.
Consequently, the cost of living increases.
In particular, lower-income individuals are hit the hardest.
This leads to price increases for essential consumer goods.
2. U.S. Fiscal Crisis and Pursuit of Tariff Policies
Interest payments on U.S. federal government bonds exceed the defense budget.
As a result, the U.S. seeks to supplement insufficient tax revenue through tariff imposition.
The proportion of tariffs is likely to rise sharply from the usual 2%.
This raises concerns about a vicious cycle of trade, domestic demand, and economic crisis within the U.S.
3. Global Trade War and Target Countries
The U.S. is exerting additional tariff pressure on countries with trade surpluses, including Europe, Japan, Korea, and China.
Countries subject to tariff imposition are significantly affected in their trade structure and import/export strategies.
The economic impact varies depending on their own production competitiveness and importers’ price transfer strategies.
In an economic crisis situation, the global domestic market may also contract.
4. Specific Industry Impact and Response Strategies
If high tariffs are imposed on Korean products, importers will inevitably pass them on to consumers.
The automotive industry faces a significant risk of weakened competitiveness in the U.S. automotive market.
Semiconductors have a relative buffer due to the lack of alternative production locations, but the export structure is affected.
Domestic companies and self-employed individuals are concerned about declining sales if their connection with large global export companies is weak.
Economic crises across exports, trade, and domestic demand place a complex burden on each industry.
5. Economic Impact of Tariff Imposition and Real Risks
Even if importers and large corporations share the tariff costs, the consumer burden is ultimately unavoidable.
Rising tariffs reduce the purchasing power of ordinary people, which can lead to economic recession and job losses.
Uncertainty is amplified throughout the economy, placing a burden on consumers, exporters, and the domestic market simultaneously.
If international trade conflicts persist in the long term, the instability of the global economy is expected to intensify further.
6. Outlook and Comprehensive Analysis
The U.S. is likely to actively utilize tariff policies to resolve short-term fiscal crises.
This tariff war places a long-term burden on global trade, exports, and domestic markets.
Industrially, comprehensive machinery industries such as automobiles are expected to be hit the hardest.
Lower-income consumers suffer losses, and economic inequality may worsen.
As a result, mutual tariff imposition between the U.S. and major trading partners is expected to negatively impact the overall global economy.
As tariff imposition is strengthened to overcome the U.S. fiscal crisis, the cost of living for ordinary people and the competitiveness of major industries (automobiles, semiconductors, etc.) are likely to weaken.
Rising tariffs lead to consumer price increases due to the cost-shifting structure of importers, which increases uncertainty in domestic demand and trade.
In particular, there is a high risk that the economic crisis will spread to major countries such as Korea, Japan, Europe, and China, which are caught in the global trade war, and economic contraction and job losses are of concern due to related policy changes.
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