WASHINGTON — In a sweeping and contentious move, President Donald Trump has unveiled a new tariff policy targeting nearly every country in the world, imposing a minimum 10% tariff on U.S. trading partners. The plan, which has been met with skepticism by trade experts, aims to reciprocate what the administration claims are unfair trade practices by other nations.
According to the White House, the tariff rates were calculated using a formula that divides the U.S. trade deficit with each country by the value of imports from that country. However, economists and trade experts have dismissed this methodology as "gibberish," saying it fails to account for various factors such as value-added taxes, tariffs, and other trade policies.
The administration's approach has sparked concerns of a trade war, which could have far-reaching implications for the U.S. and global economies. Economists warn that the tariffs will create a tax burden on the U.S. economy, ultimately affecting American workers and business owners. As companies struggle to absorb the increased costs, they may be forced to cut hiring, reduce profits, or pass the costs on to consumers, leading to higher retail prices.
The move is part of Trump's broader effort to bring manufacturing back to the United States, but experts caution that this goal may be difficult to achieve in the short term. Meanwhile, the uncertainty surrounding trade policy is already driving major corporations to pause investment decisions and reconsider their supply chains.
As the global economy teeters on the brink of a trade war, the consequences of the Trump administration's policies remain to be seen. One thing is certain, however: the new tariffs will lead to a higher cost of trade globally, with American workers and business owners bearing the brunt of the burden.
