President Trump has announced sweeping new tariffs on U.S. imports, marking a significant shift away from decades of free trade policy. The move introduces a baseline 10% tariff on all imports, with sharply higher rates for goods from major trading partners, including Europe, Japan, and China.
The administration argues that these measures will strengthen domestic industries and force foreign governments to reduce trade barriers. However, the policy has already rattled financial markets, with stocks reversing gains as Trump detailed the reciprocal levies.
Under the new structure, imports from the European Union, Japan, and South Korea will face 20% or more tariffs. Vietnamese goods will be taxed at 46%, while Taiwanese imports will see a 32% levy. Steel, aluminum, lumber, and pharmaceuticals are among the industries affected. Meanwhile, Canadian and Mexican imports failing to meet USMCA requirements will be subject to 25% tariffs until stricter border controls are implemented.
The administration claims that the tariffs were designed to counter foreign trade policies deemed unfair to U.S. exporters. However, economists warn that the aggressive approach could raise consumer prices, disrupt supply chains, and increase recession risks. Businesses remain uncertain about trade policy stability, while consumer confidence surveys suggest growing concerns over inflation.
Source: Axios