Trump’s Trade Strategy May Drive Up Costs of Goods

Dubela, Riddhi Biswas: Former U.S. President Donald Trump has shared a new trade plan called “Liberation Day.” He wants to add a 10% tax (tariff) on all goods coming into the U.S. and charge even higher taxes on products from countries that tax American goods. According to Trump, this will help American businesses and reduce dependence on other countries.

However, many experts are worried about the same as they think that if the U.S. adds taxes on foreign goods, those countries might do the same to American products. This could lead to a “trade war,” making things more expensive for both businesses and customers. Items like clothes, electronics and household goods could cost more.

Financial markets are already reacting, and some fear that businesses that sell goods internationally might suffer. With the U.S. elections coming up, this topic is likely to be a big debate. People are now waiting to see if Trump’s plan will actually help or create more problems.