How Trump’s 2025 Tariffs Affect Different Stakeholders of Both Economies of the U.S. and China to See if They Had a Positive or Negative Effect on a Broad Scale

Author(s)	Hasan Ali Khan
Country	India
Abstract	In April 2025 the United States introduced a new set of tariffs under the Trump administration, presented as a way to counter trade imbalances and reduce reliance on foreign supply chains. These tariffs were broader than the ones used in the 2018–2020 trade war and triggered both retaliation abroad and debate inside the U.S. This paper looks at what happened to U.S. imports from China after the tariffs, and also to things like tariff revenue, employment, and firm closures, using an event-study approach with monthly data. The results show a clear drop in targeted imports following the announcement, along with a short-run increase in government revenue from tariffs. However, the earlier evidence suggests possible negative problems on US firms through higher input costs and uncertainty. As a whole, the findings explain that even if the tariffs achieve some of their goals of reducing imports and increasing revenue, they have trade offs that weaken their effectiveness as a long-term policy.
Keywords	tariffs, U.S.–China trade war, retaliatory trade policy, macroeconomics, global economics, tariff revenue, public debt, unemployment, firm closures, protectionism, globalization, supply chains
Field	Sociology > Economics
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-31
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.59394

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