Donald Trump’s second stint in the White House was meant to mark a return to economic nationalism, a revival of his signature “America First" agenda. At the heart of this strategy is a sweeping tariff regime, an aggressive attempt to punish trade partners, bring manufacturing home, and tilt the global balance of power.

But as the dust settles, the tariff war is turning into a landmine of errors: hurting the US economy, straining alliances, and failing to deliver the promised results. The US is heading towards high inflation and slow growth.

Trump likes to say that tariffs are paid by foreign countries. The reality is starkly different: Goldman Sachs estimates that the US will pay 75 per cent of the tariffs. So it is mostly American consumers and businesses that are footing the bill.

US manufacturers, already stretched by high borrowing costs, are absorbing billions in added costs for imported components. Those costs are now trickling down to consumers. As per Goldman Sachs, households could face an extra $5,200 annually in price increases.

Inflation, which had cooled briefly, is rising again, with the Consumer Price Index ticking up in response to the tariff shock. For now, it is American businesses that are paying for most of the tariffs, but they are very clear — they cannot “eat" these tariffs for too long as they risk going under.

Soon, most of the tariffs will be paid for by the consumers. As per Goldman Sachs again, “Starting in the fall, as many of the higher tariffs threatened by Trump take effect, the consumer share of the tariff cost is expected to rise to 67 per cent, while the share for US businesses will fall to 8 per cent. The remaining 25 per cent will be absorbed by........

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