Trump’s Tariffs Take Effect Globally A New Economic Era Begins
In a sweeping move, the United States has officially implemented new tariffs on imports from over 60 countries, including the European Union, Japan, South Korea, Taiwan, Vietnam, and Bangladesh. The measures, which took effect at midnight on Thursday, range from 10% to 20% depending on the country and product. According to President Donald Trump, the goal is to pressure these nations into making large-scale investments in the U.S. economy. “I believe growth will be unprecedented,” Trump said, adding that the U.S. is “collecting hundreds of billions of dollars” from tariffs although he couldn’t specify an exact figure yet.
Early Economic Strains Appear Pressure on Jobs, Wages, and Construction
Despite the administration’s optimistic tone, the economic toll of the tariffs is becoming more apparent. Economic reports since April when the first wave of tariffs was introduced have shown a decline in job growth, increased inflationary pressures, and a slowdown in the housing market. Construction spending fell by 2.9% over the past year, and manufacturing jobs, which Trump had promised to expand, have actually declined. John Silvia, CEO of Dynamic Economic Strategy, noted, “The higher the tariff rates, the lower the real wages for workers,” warning that U.S. productivity and real income are deteriorating steadily.
Import Surge Ahead of Tariffs and a Widening Trade Deficit
In an attempt to avoid the tariffs, importers rushed to bring in goods before the deadline, which ironically widened the U.S. trade deficit. The deficit hit $582.7 billion in the first half of 2025 a 38% increase compared to the same period in 2024. The European Union, facing a 15% tariff, has pledged significant investments in the U.S., though the exact terms are still under negotiation. Meanwhile, countries like China and Mexico are working with different tariff timelines as negotiations continue. Trump has also threatened further tariffs on countries doing business with Russia, arguing that such ties indirectly support Moscow’s war on Ukraine.
