Trump administration tariffs will increase costs to consumers
The tariff increases established by the United States and the associated global retaliations bring about a scenario that is very different from what we were used to. I see two major changes.
1) Generalized increase in costs
The prices of goods and services will be burdened by the new tariffs, which are very significant. And, of course, this will be reflected in people’s pockets.
2) Fiscal balance (potentially)
These tariffs will bring substantial revenue to governments, which will thus be able to escape the current situation of systemic increase in deficits.
The consequence will be a reduction in people’s purchasing power. It is as if there were a generalized increase in taxes to pay for the public sector, making an environment of fiscal balance viable. In an optimistic view, in the long term, there will be conditions for progress again, with budgetary sustainability.