The Intelligence from The Economist Duty regime: America’s consumers will foot the tariff bill
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Aug 7, 2025 
Rachana Shanbhogue, The Economist's business affairs editor, and Shishank Joshi, the defense editor, dive into the impact of Trump's tariffs on American consumers, highlighting the financial strain these duties impose. They discuss how tariffs may persist beyond Trump's era and the broader implications for global trade. The conversation shifts to the U.S. Space Command's evolving role in space defense amid rising tensions with countries like China and Russia. Lastly, they humorously touch on Gen Z's fascination with personalized water bottles, blending culture and commerce.
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Complex Tariff Landscape
- America is imposing various tariffs including reciprocal, deal-agreed, and politically motivated ones, ranging from 10% to 41% or higher.
- These tariffs reflect President Trump's strategy to penalize perceived unfair trade practices and assert political goals.
Tariffs Hit American Pocketbooks
- Tariffs increase government customs revenue but primarily hurt American businesses and consumers by raising their costs.
- Companies have absorbed some costs now but will eventually pass these costs on to consumers, making the situation unsustainable.
Businesses Navigate Tariff Uncertainty
- Businesses remain uncertain about details and possible exemptions in new tariff rules.
- They delay supply chain changes and seek loopholes, causing wasteful lobbying and inefficiencies.