Tariff Wars, Crisis Situation for Supermarkets and the Retail Sector

● Tariff Fury – US Economy Supply Chains Collapse

Key Analysis of Recent Tariff Wars, Supply Chain Instability, and New Challenges for the U.S. Economy

[1] The Onset of the Tariff War and Its Impact

As the tariff war intensified, the effective tariff rate in the U.S. surged from 2.5% to 5%, eventually reaching 18%. This change marks the highest figure recorded in 91 years, with tariff increases directly burdening product prices within the U.S. Tariff increases, alongside the realignment of the global economy’s supply chains, are exacerbating inflationary pressures.

[2] Crisis Situation for Supermarkets and the Retail Sector

In a large supermarket in the U.S., consumers are observed pre-purchasing goods and daily necessities. This phenomenon occurs as retailers, in the wake of tariff hikes, focus on securing inventory before price increases. Notably, the case of New Yong Benetton’s toy store announcing its closure after 44 years illustrates its struggle with a double whammy: intensifying competition and rivalry with online retailers, as well as rising supply costs.

[3] Ripple Effects on the Manufacturing and Automotive Industries

Beer manufacturers and auto parts importers are heavily impacted by the rising prices of European grains and Canadian parts. Particularly, Michigan is experiencing a concentrated burden across its manufacturing sector due to increased prices of parts imported from Canada. This situation, accompanied by supply chain instability and rising inflation, is negatively affecting the U.S. economy as a whole.

[4] Overall Economic Impact and Future Outlook

The economic crisis situation across various sectors is manifested in decreased household income and rising prices. For instance, the inflation rate stands at 1.8%, indicating that the burden from the tariff war is having a tangible impact on the national economy. Concurrently, the realignment of global supply chains and inflationary pressures are expected to have negative ripple effects on the economies of the U.S. and the entire world in the long term. The future economic outlook is expected to be largely determined by tariff policies and supply chain management strategies.

The U.S. has recorded its highest tariff rate in 91 years due to the tariff war, with both retailers and manufacturers facing price increases and rising supply costs.Various industries, including large supermarkets, toy stores, beer manufacturers, and auto parts importers, are experiencing difficulties due to global supply chains and inflationary pressures.The future impact on the economy as a whole is expected to vary depending on tariff policies and supply chain management strategies, closely linked with key keywords such as global economy, tariff, supply chain, inflation, and economic outlook.

*Source: YTN

[자막뉴스] 44년 만에 폐업 선언…美 소비자들 ‘두손 두발’ / YTN

● Tariff Catastrophe- Americans’ Wallets Burn- Half Million Jobs Lost

The Shadow of US Tariff Policy: The Paradox of Consumer Burden and Economic Slowdown

Background of Tariff Policy Promotion and President Trump’s Claims

Recently, concerns about the US economic outlook are growing as the Trump administration’s tariff policy is newly highlighted.

President Trump claimed that tariff revenues made America rich, but the actual economic reality forebodes increased consumer burden and economic growth slowdown.

This article will elaborate on key issues related to economic outlook, tariff policy, the US economy, rising prices, and Trump’s policies in chronological order.

Initial Tariff Rate Increase and Its Impact (Recent Situation)

According to an analysis by the Yale Budget Lab, tariff rates soared from an average of 2.4% at the beginning of this year to a staggering 18.3%.

This is the highest level recorded in 91 years since the Great Depression in 1934.

Particularly for highly import-dependent items, prices have surged, increasing the consumption burden on average households.

Rising Prices and Price Shocks by Item

According to economic forecasts, US inflation is expected to rise by approximately 1.8% this year.

Shoe prices could rise by about 40%, and clothing prices by up to 38%, which will significantly impact rising prices and consumer sentiment.

Rising prices are perceived as a negative signal across the US economy, and changes in consumer spending patterns are anticipated.

Economic Growth Slowdown and Employment Market Contraction

Due to the introduction of new tariff policies and the ripple effects of rising prices, the real GDP growth rate of the US economy is projected to decrease by 0.5 percentage points annually until next year.

Accordingly, an annual economic loss of approximately 170 trillion Korean Won (KRW) in dollar terms is expected by 2024.

Along with a general contraction in industrial production, there is an increasing risk of approximately 497,000 jobs being lost.

Consumer Burden and Government Response Measures

The ultimate victims of the tariff policy are American consumers.

The government is also considering a plan to return tariff revenues to the public in the form of dividends.

However, short-term measures alone make it difficult to resolve long-term economic instability factors.

Market Reaction and Future Outlook

Economic experts analyze that while tariff policies may yield protectionist effects in the short term, they will have negative impacts on the overall US economy in the long term.

In particular, changes in the US trade structure linked to the global economy, rising prices, and weakening consumer sentiment are expected to combine, increasing overall economic uncertainty.

In this situation, the solutions for future Trump policies and the government’s additional measures are drawing attention.

< Summary >

The Trump administration’s tariff policy is causing significant repercussions in the US economy.

Tariff rates have surged from 2.4% to 18.3%, leading to rising prices and increased consumer burden.

Economic growth slowdown and the contraction of approximately 490,000 jobs are predicted, increasing overall uncertainty in the US economy.

Despite short-term measures such as the government’s dividend redistribution, analysis suggests that long-term structural changes in the economy are needed.

[Related Articles…]

*Source: JTBC News

‘부메랑’ 직격탄 맞는 미 국민들…”지출 수백만원 늘 것” / JTBC 아침&