Back to today’s briefing

Story perspectives

Tariff Hikes Threaten 490,000 Jobs and Economic Stability

11/12/2025

42 6 Full Breakdown

Summary

Story summary

Tariffs have increased import prices by about 5%, contributing to a $125 billion annual output loss.
The policy could cost nearly 490,000 jobs by end-2025 and lift unemployment by 0.3 percentage points.
Disrupted supply chains and retaliatory moves from trading partners deepen the economy's strain.
The long-term impact remains uncertain.

History

Historical Context

The Smoot-Hawley Tariff Act, enacted on June 17, 1930, raised tariffs on over 20,000 imported goods, aiming to protect American industries. However, it led to retaliatory tariffs from countries like Canada and the UK, causing a 60% decline in international trade and an estimated 3 million job losses. This historical precedent highlights the risks of protectionist policies, echoing today's tariff increases.

1 of 2

Story summary

Tariffs have increased import prices by about 5%, contributing to a $125 billion annual output loss.
The policy could cost nearly 490,000 jobs by end-2025 and lift unemployment by 0.3 percentage points.
Disrupted supply chains and retaliatory moves from trading partners deepen the economy's strain.
The long-term impact remains uncertain.

1 / 2