Trump's Global Tariffs Take Effect
President Trump’s new tariffs have officially taken effect, targeting over 90 countries in a bid to “bring jobs home” and cut the trade deficit in the US. Rates now range from 10% to a whopping 50%, with nations like India, Switzerland, and Brazil among the hardest hit by the tariffs. Goods from the EU, Japan, and South Korea now face a 15% tariff, while Taiwan and Vietnam sit at 20%. India could see an additional 25% penalty next month over its oil trade with Russia, which Delhi has called “unfair, unjustified and unreasonable.”
The new policy, pushed through with little warning and multiple delays, is being marketed by Trump as a long-term win: “I think the growth is going to be unprecedented.” But signs of strain are already showing. Inflation is creeping up, hiring is slowing, and housing markets in some regions are dipping. Critics argue the strategy is chaotic and legally shaky, pointing to stalled trade talks and economic disruption. “The economy has become less productive,” warned economist John Silvia. Still, Trump claims the tariffs are bringing in “hundreds of billions” and insists they're working.
There are a few winners. Apple announced a $100B U.S. investment this week, possibly dodging Trump's promised 100% tariff on semiconductors. Big chipmakers like Samsung and TSMC have reportedly received exemptions from the upcoming tariff. And while some countries, like the UK and EU, secured deals to soften the blow, others, including Switzerland and India, are reeling. As economist Bert Hofman put it: “Now you can start to analyse the impact of the tariffs.” Whether that impact is economic revival or erosion remains to be seen.
