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REDDIT

Gross imports only add up to 14% of US GDP. Is it possible everyone is blowing out of proportion the impact that tariffs will have on the US economy?

Data point: https://fred.stlouisfed.org/series/B021RE1A156NBEA

So obviously the consensus is that tariffs will devastate the US economy because we’re so reliant on imports. So I was curious how much the US actually imports and was surprised to see gross imports only add up to 14% of our GDP, meaning 86% of our domestic economy is entirely domestically produced.

So obviously tariffs will hurt that 14% and will have secondary effects. But is it possible this is why major investors aren’t worried?

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