PAUL WISEMAN and CHRISTOPHER RUGABER Economics Writers.

The US. Capitol is photographed, Wednesday, Oct. 1, 2025, on Capitol Hill in Washington. (AP Photo/Mariam Zuhaib)

Federal shutdowns usually don’t do much economic damage. There are reasons to worry about this one

Shutdowns of the federal government usually don’t leave much economic damage. But the one that started Wednesday looks riskier, not least because President Donald Trump is threatening to use the standoff to permanently eliminate thousands of government jobs. For now, financial markets are shrugging off the impasse as just the latest failure of Republicans and Democrats to agree on a budget and keep the government running. But Trump’s massive layoff threat and the precarious state of the American economy raise the odds of longer-lasting damage.

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FILE - President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House on April 2, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

Answering your questions about President Trump’s tariffs

President Donald Trump returned to the White House in January determined to overturn decades of American policy and build a tariff wall around a U.S. economy that used to be pretty much wide open to foreign products. In the process of making that a reality, he has rattled financial markets and worried consumers with an ever-changing lineup of import taxes. The pattern goes something like this: He’ll announce new tariffs, then suspend them, then come up with new ones. The uncertainty has paralyzed businesses who don’t know what to expect. And economists worry that the tariffs will push up prices and hurt economic growth. The Associated Press asked for your questions about Trump’s tariffs. Here are a few of them, along with our answers.

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