US economy suffers significant damage from tariffs and Iran war
Updated
Updated · The Independent · May 6
US economy suffers significant damage from tariffs and Iran war
4 articles · Updated · The Independent · May 6
Moody's chief economist Mark Zandi said hiring averaged just 9,700 jobs a month last year, while inflation rose to 3% from 2.5%.
He said healthcare accounted for 693,000 added jobs and warned war-driven oil and commodity price rises could inflict even more damage by weakening growth and lifting prices.
Trump's tariffs raised $195bn in fiscal 2025, but studies say consumers bear nearly all costs, with average households facing $1,300 extra this year amid legal and political backlash.
With tariffs struck down, will consumers see relief, or will new trade rules keep prices high?
U.S. debt has surpassed GDP. Can tariff revenue fix this problem, or is it a drop in the ocean?
Amid war and inflation, what does the future of global trade look like after the tariff policy reset?
Global Economic Fallout of the 2026 Iran War: Energy Shocks, Food Insecurity, and Stagflation Risks
Overview
The 2026 Iran blockade of the Strait of Hormuz triggered a severe global economic crisis, disrupting about 20% of oil and gas shipments and causing the worst energy shock in decades. This led to volatile oil prices and a critical shortage of fertilizers, threatening global food security and pushing millions into hunger. Concurrently, U.S. tariff increases from 2025 raised consumer prices, disproportionately burdening lower-income households and straining key sectors like agriculture and manufacturing. These combined shocks have fueled persistent inflation and slowing growth, creating stagflation risks. Meanwhile, geopolitical shifts and supply chain restructuring are driving long-term changes, with businesses and nations seeking resilience amid ongoing uncertainty.