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Pulakit Bararia

Building Snippetz la... • 3m

So… tariffs are back They’re called reverse tariffs (or more technically, reciprocal tariffs) and they’re turning the trade tables in a pretty dramatic way. Economists are raising eyebrows Because trade deficits aren’t necessarily a bad thing. It’s kind of like going to your favorite grocery store—you spend more there than you earn from them. Doesn’t mean the store is cheating you. And while the reverse tariff policy sounds tough, it could come at a cost. Some real talk: These new reciprocal tariffs could bump U.S. average tariffs by 3.3%. That may increase inflation by 0.25 to 0.4 percentage points. Worst-case, it could shave off 0.6% of the GDP—translating to billions in economic slowdowns. Businesses, especially small and medium ones, could struggle with rising input costs. Consumers might notice pricier electronics, clothing, and raw materials. And globally? This could lead to another trade war round, with retaliation from big players like the EU and China already bubbling

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