Trump’s Historic Tariffs Take Effect: What It Means For U.S. Consumers
President Donald Trump’s sweeping new tariffs on dozens of U.S. trading partners took effect today, marking a historic shift in American trade policy.
“10% is really the new zero,” CNN reporter Matt Egan explained, describing the minimum tariff for countries the U.S. has a trade surplus with.
Countries with a trade deficit with the U.S. face a 15% baseline tariff, and more than two dozen nations face even higher rates — including 30% on South Africa, 35% on Iraq, 39% on Switzerland, and 50% on Brazil, even though the U.S. actually has a trade surplus with Brazil.
The levies raise the effective U.S. tariff rate above 17% — the highest since the Great Depression — and are expected to cost the average U.S. household about $2,400 this year, according to the Yale Budget Lab.
WHAT’S NEXT
Americans will likely see the full impact of these tariffs on the costs of everyday goods like computers, clothing, watches, shoes, alcohol, furniture, and toys in about 8 months, according to Egan. Goldman Sachs’ economists predict as much as 70% of tariffs’ costs will be passed onto consumers through higher prices. The stock market has remained strong despite the tariff back-and-forth, but the long-term impact on the U.S. economy remains to be seen.
Are we done here? Treasury Secretary Scott Bessent told MSNBC Thursday that the administration's trade deals are "largely done" and that the Trump administration is now shifting its focus to tackle the nation's affordability crisis — though high prices from tariffs are likely to affect cost of living.
And more tariffs could be on the way. On Wednesday, Trump imposed a 50% tariff on India — to take effect later this month — and warned of consequences for other countries buying Russian goods. He also threaten to impose 100% tariffs on computer chips not built in the U.S.