Trump's broad tariffs go into effect, just as economic pain is surfacing
WASHINGTON -- President Donald Trump began levying higher import taxes on dozens of countries Thursday, just as the economic fallout of his monthslong tariff threats has begun to create visible damage for the U.S.economy.Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10% or higher.
Products from the EU, Japan and South Korea are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20%.Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the U.S.“I think the growth is going to be unprecedented,” Trump said Wednesday afternoon.
He added that the U.S.was “taking in hundreds of billions of dollars in tariffs,” but he couldn't provide a specific figure for revenues because “we don’t even know what the final number is” regarding tariff rates.Despite the uncertainty, the Trump White House is confident that the onset of his broad tariffs will provide clarity about the path of the world's largest economy.
Now that companies understand the direction the U.S.is headed, the Republican administration believes they can ramp up new investments and jump-start hiring in ways that can rebalance the U.S.
economy as a manufacturing power.But so far, there are signs of self-inflicted wounds to America as companies and consumers alike brace for the impact of new taxes.
What the data has shown is a U.S.economy that changed in April with Trump’s initial rollout of tariffs, an event that led to market drama, a negotiating period and Trump's ultimate decision to start his universal tariffs on Thursday.Economic reports show that hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline after April, said John Silvia, CEO of Dynamic Economic Strategy.“A less productive economy requires fewer workers,” Silvia said in an analysis note.
“But there is more, the higher tariff prices lower worke...