The ripple effects of recent U.S. tariff policies continue to deepen, impacting businesses, consumers, and financial markets alike.

A report released on May 20 by Allianz Group revealed that 54% of U.S. companies are raising prices to cope with rising costs due to tariffs. Major U.S. retailers like Home Depot and Target report shrinking profit margins and declining sales forecasts, with some products potentially being removed from shelves.

Consumers are also pulling back, delaying major renovation plans over inflation concerns.

St. Louis Fed President Musalem warned on May 20 that even with potential adjustments, high uncertainty remains, threatening near-term economic stability.

On May 21, 12 U.S. states, including Oregon, Illinois, and New York, filed a lawsuit challenging the legality of federal tariff policies, arguing they violate constitutional order and risk economic disruption.

A Reuters survey confirmed growing concerns, with 100% of economists surveyed citing economic harm from recent government actions, and over 55% calling the impact “significant.”

Meanwhile, U.S. financial markets reacted negatively: 20-year Treasury yields surged to 5.047%, U.S. stocks slumped, and the dollar index fell below 100.