Trumponomics is taking a dramatic turn as new tariffs and trade policies begin to weigh on the U.S. economy, signaling what many now call the “Trump slowdown.” In the past week, sweeping tariffs have been imposed on nearly 70 countries, with rates ranging from 10% up to 41%. These moves have driven the average effective U.S. tariff rate to its highest level since 1934.

The immediate impact has been unsettling. U.S. stocks tumbled following the tariffs’ announcement, and the latest job reports have revealed clear signs of a hiring slowdown. According to economists, these developments are early red flags that the economy is experiencing significant headwinds caused by the new trade policies.

Beyond Wall Street, households are starting to feel the pinch. With the extensive tariffs now in place, the average American household faces an estimated tax increase of nearly $1,300 this year. In total, the tariffs now affect about 71% of U.S. goods imports, reshaping global supply chains and the broader economic landscape.

There are growing concerns about stagflation—a problematic mix of slowing economic growth alongside rising prices. This scenario poses a major challenge for the Federal Reserve, which must decide whether to raise interest rates to fight inflation, risking a deeper slowdown, or lower them to boost growth and possibly fuel even higher prices.

As the trade policy evolves, businesses and consumers alike are bracing for continued uncertainty. While tariffs are intended to protect domestic industries, their broader consequences are making themselves felt across the labor market, the stock market, and kitchen tables throughout the country. As the full effects of these measures continue to unfold, the coming months will be critical in determining the direction of the U.S. economy under these new policies.