Editor's note: Xue Tianhang is an associate researcher and deputy director of the Research Center for Regional Coordinated Development at Zhejiang University. The article reflects the author's opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.

The US Bureau of Labor Statistics released its latest data on Wednesday, showing that in February this year, the US Consumer Price Index (CPI) rose 2.8 percent year on year. Meanwhile, the core CPI, which excludes food and energy costs, increased by 3.1 percent, well above the US Federal Reserve's 2 percent target. This suggests that after a sharp surge in January, inflation in the US remains at a high level. Persistently high inflation has hit consumers hard. In January, US consumer spending fell by  0.2 percent, marking the steepest decline in nearly four years.

At the same time, according to the most recent survey by the Conference Board, a global non-profit think tank, US consumer confidence in February dipped markedly by seven points from January to 98.3, significantly below the market expectation of 102.3. This marked the largest drop since August 2021. The survey also revealed that US consumers are increasingly pessimistic about the labor market, with pessimism reaching its highest level in nearly 10 months. As inflation remains high and US economic growth gradually slows, market concerns over the stagflation of the US economy are escalating. The Federal Reserve Bank of Atlanta has projected that US GDP may contract by 1.5 percent in the first quarter of 2025.

A range of data suggests that the executive orders to impose tariffs enacted since Trump took office have failed to achieve their intended goals of protecting American enterprises and stimulating economic growth. Instead, these policies have driven up prices across nearly all categories of goods in the US. From household appliances, daily necessities, and clothing on the shelves at Walmart to steel materials on construction sites, across-the-board price increases have significantly eroded consumer welfare. In particular, middle- and lower-income consumers have suffered the most. A Bloomberg survey found that 60 percent of Americans expect Trump's tariffs will lead to higher prices. Research from the Peterson Institute for International Economics estimates that tariffs have increased annual costs for the average US household by approximately $1,277. Meanwhile, a previous analysis by Moody's indicated that 92 percent of the costs of the tariff hikes would fall on US consumers.

The Trump administration's tariff hikes have aroused strong dissatisfaction among both the American public and enterprises. Warren Buffett made a rare public comment on March 2, warning that punitive tariffs by the US could drive inflation and hurt consumers. Ford CEO Jim Farley cautioned that Trump's proposal to impose 25 percent tariffs on Mexico and Canada would "blow a hole" in the US auto industry. In the meantime, the international community has strongly condemned and taken action against the reckless adoption of tariff policies by the US. After US tariffs on steel and aluminum imports from the EU took effect on March 12, the EU announced a package of countermeasures, preparing to impose retaliatory tariffs on 26 billion euros ($28.4 billion) worth of US exports to Europe. Canada has also unveiled retaliatory tariffs on US imported goods worth C$29.8 billion ($20 billion) and has joined forces with Europe in pressuring Trump to counteract US tariffs on Canadian steel and aluminum products.

There is a broad international consensus that protectionism leads nowhere and that trade and tariff wars have no winners. Amid persistent inflation and sluggish economic activity, the US must reassess its trade policies and take effective measures to ease the burden on consumers and restore market confidence. Otherwise, the US economy will slip into a recession.