Higher Prices: Tariffs increase the cost of imported goods like electronics, clothing, toys, and appliances because businesses pass the extra cost of the tariffs onto consumers. For example, items like smartphones and laptops that are made in China or contain Chinese parts saw price hikes.

Impact on Small Businesses: Small businesses that rely on imports for materials or products were hit harder by tariffs. They often have smaller profit margins and may not have the resources to absorb the added costs, so many had to raise prices or cut back on hiring, which can hurt the economy at the local level.

Job Losses in Some Sectors: While some U.S. industries, like steel and aluminum, got a boost from tariffs on imports, others were negatively affected. For instance, manufacturers who use imported materials to make their products faced higher production costs. That led to some job losses, especially in industries like automotive and electronics, where many parts come from overseas.

Supply Chain Issues: The tariffs caused disruptions in global supply chains, which have been worsened by the COVID-19 pandemic. That made it harder for companies to get materials they needed on time, which led to delays and shortages in some products. For example, people experienced longer wait times for cars and electronics due to the shortage of key parts.

Farmers and Agriculture: On the flip side, farmers also felt the effects. China, a big buyer of U.S. agricultural products, imposed retaliatory tariffs on things like soybeans, pork, and other crops, hurting American farmers’ sales to China. The U.S. government stepped in with subsidies to help, but it didn’t fully make up for the lost business.

Global Tensions and Trade Relationships: Finally, the tariffs have strained relations with countries that have been targeted, especially China, but also U.S. allies like the EU and Canada. These tensions can impact trade agreements, affecting the overall economy and leading to uncertainty.