Back to today’s briefing

Story perspectives

Trump Celebrates Trade War Wins, Experts Warn of Risks

8/9/2025

26 5

Summary

Story summary

President Trump touts victories in the trade war, asserting that tariffs have reduced the U.S. trade deficit. Yet, experts caution that these measures could backfire, driving up inflation and hindering economic growth. In contrast, the EU appears poised to weather the storm, facing less economic fallout from the new tariff landscape.

History

Historical Context

The U.S.-China Trade War began in 2018, driven by concerns over trade imbalances and intellectual property theft. In 2019, the Trump administration imposed tariffs on $360 billion of Chinese goods, echoing historical trade conflicts like the Smoot-Hawley Tariff of 1930. This ongoing trade tension raises fears of inflation and could reshape global trade dynamics, particularly affecting the EU's economic landscape.

1 of 2

Story summary

President Trump touts victories in the trade war, asserting that tariffs have reduced the U.S. trade deficit. Yet, experts caution that these measures could backfire, driving up inflation and hindering economic growth. In contrast, the EU appears poised to weather the storm, facing less economic fallout from the new tariff landscape.

1 / 2