When US president Donald Trump took office in January he inherited a strong economy, which was growing faster than those of many of its rivals. Nevertheless, he won the election in November on the back of strong voter dissatisfaction with the economy, especially the cost of living. This is the legacy of high inflation sparked first by COVID and then Russia’s invasion of Ukraine.
But Trump also won with his appeal to “left-behind” voters, especially working-class people in the US rust belt. This demographic has suffered a long-term decline in living standards as manufacturing jobs in traditional industries like car-making and steel have disappeared.
Trump claimed during his campaign that high tariffs were the answer to most of America’s economic problems. He promised a revival in domestic manufacturing by blocking imports, while forcing foreign firms to shift production to the US. And there was also the promise of tax cuts paid for with the revenues raised from tariffs.
