The Real Cost of Trade Wars: Decoding Trump’s Tariff Chaos

When trade deadlines keep shifting and businesses can’t plan ahead, someone pays the price—and it’s usually consumers.

Parag Amin, Managing Attorney and Business Analyst at LawPLA, joined FOX 2 News on August 12, 2025, to analyze the mounting economic uncertainty created by President Trump’s unpredictable tariff policies. Just days after the latest round of reciprocal tariffs finally took effect on August 7—following multiple delays from July 8, then July 9, then August 1—the economic data was painting a troubling picture. With July job growth stalling at just 73,000 new positions and construction spending dropping 2.9% over the past year, Amin’s analysis couldn’t have been more timely as markets grappled with the reality of the highest U.S. tariff rates since 1933.

During his FOX 2 appearance, Amin explained why inflation numbers appear deceptively stable while warning they won’t stay that way. The Yale Budget Lab estimates these tariffs will cost the average American household $2,400 annually, with businesses currently absorbing much of the impact to maintain market share. However, as Amin emphasized, this strategy has limits—companies cannot indefinitely eat costs that average 18.6% across all imports. The legal complexities add another layer of uncertainty, with federal courts ruling the tariffs exceed presidential authority under the International Emergency Economic Powers Act, though appeals have kept them in effect.

For business owners and consumers alike, Amin’s insights illuminate how products from wine and apparel to automobiles and home appliances face price increases of 19-39% as companies eventually pass tariff costs to customers. The ripple effects extend beyond immediate price hikes, affecting supply chain planning, employment decisions, and long-term business strategy in an environment where trade policy changes faster than companies can adapt.