Expert delivers a damning verdict on Trump's offensive

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• One year after "Liberation Day", expert Laura von Daniels draws a negative balance: Trump's tariffs are driving up inflation and have not delivered the promised additional budget revenue.
• Von Daniels sees the greatest damage to the US economy in the political uncertainty - combined with the consequences of the Iran war and rising energy prices.
• The Supreme Court declared many tariffs unlawful, but Trump responded immediately with new trade measures.

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It was one of the most momentous days of Trump's second term: on Liberation Day a year ago, the US President announced high special tariffs on goods from numerous countries. Today, political economist Laura von Daniels from the German Institute for International and Security Affairs (SWP) draws a clear conclusion: the calculation is not working.

"For consumers and most companies in the USA, the tariffs are leading to higher costs," the political economist said. "Together with the drastic rise in energy prices due to the Iran war, the tariffs are also fueling inflation once again."

There is hardly anything left of Trump's promise to reduce the cost of living. Another unfulfilled promise is high additional revenue from tariffs to improve the budget situation in the USA.

Trump has created problems himself without need

"Trump has increased the budget deficit with his tax reform. Now the Iran war and further military measuresare threatening to tear even more holes in the national budget," emphasized von Daniels. However, the main damage to the US economy is being caused by the uncertainty that Trump's policies are creating among market participants. "Trump has created all these problems himself - without necessity."

In such a tense geopolitical situation, there are also other risks that are difficult to calculate, such as distortions on energy markets and supply chain disruptions for critical products. "This makes it even more incomprehensible why we are starting a tariff war with the whole world," says von Daniels.

One year after "Liberation Day"

One year ago today, on Liberation Day, Trump announced high special tariffs on goods from numerous countries. The aggressive tariff policy is a core element of Trump's second term in office. The Supreme Court - the US Supreme Court - has now ruled that many of his tariffs are unlawful in their current form.

Although the Supreme Court's decision has put a damper on Trump's tariff policy, it cannot stop him, according to von Daniels. As announced, Trump imposed other tariffs immediately after the ruling. The US government is already considering new trade measures.

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