A year after President Donald Trump proclaimed a “golden age” of growth after introducing ‘Liberation Day’ tariffs, a new Cato Institute study reveals that his sweeping duties have delivered higher consumer prices and bureaucratic chaos rather than the promised “economic independence.”
A Stalled ‘Golden Age’
When President Trump unveiled his global “reciprocal” tariffs twelve months ago, he championed a rebirth of American industry. However, the data paints a starkly different reality.
According to the Cato Institute, the promised manufacturing boom never arrived. Instead, manufacturing employment continued to struggle and overall economic growth slowed, despite strong tailwinds from the booming artificial intelligence sector.
Rather than lowering costs, the duties undeniably inflated prices. Economic research shows that up to 96% of the higher costs from the tariffs were passed directly onto American consumers, keeping prices elevated across major U.S. retailers.
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