Trump Implements Sizable 'Retaliatory' Taxes on Imports, Causing Shift in International Commerce
Trump doesn’t give a damn about the trembling stock market, threats of payback, or even some of his bloke mates urging him to chill out on his signature economic policy. He stands firm as ever, slapping a fuckton of new motherfuckin' tariffs on a bunch of America's pals and enemies alike. The goal, warned in fiery rhetoric, is to bring fairness back to American industries.
Goods from China, the biggest target, are now subject to at least a 104% tariff. Trump cranked up these charges even higher after China didn't back the fuck off a 34% retaliatory tariff threat. So, it ain't exactly reciprocal, but whatever, right?
The "reciprocal" rates are calculated by dividing a nation's trade deficit with the US by its exports to the country and multiplying by 1/2. They range from 11% to a whopping 50%. Only Mexico and Canada managed to avoid this round of punches. The EU took a solid 20%, China a hefty 34%, Japan got slapped with 24%, Vietnam got hammered with 46%, and South Korea scored a 25%.
These new rates came down shortly after Trump announced a 10% universal tariff on all countries' imports, aside from Mexico and Canada. But don’t worry, these rampant costs won't land on the countries Trump targeted. Instead, they'll be imposed on importers, who'll inevitably pass the fuckin' bill onto wholesalers, retailers, and, ultimately, the consumer.
With America handling a substantial economic burden, the global trade war could escalate more dramatically than ever. China, already planning to escalate its response against the US, swore it would "fight to the end" of this shitshow.
Trump, meanwhile, teased that China "wants to make a deal, badly, but they don't know how to get it started." As the world braces for these steep price hikes, some experts predict a full-blown global recession. Some forecasters believe American consumers will fork out an average of $2,100 more per year due to Trump's tariffs, according to the nonpartisan Tax Foundation.
With Trump rattling off escalating tariffs on everything from Chinese goods to steel, aluminum, and cars, economists are getting worried. Last week, JPMorgan raised the possibility of a global recession to 60% by the end of the year, claiming Trump's tariff hikes are the largest U.S. tax hike in nearly six decades.
Goldman Sachs upped its forecast for a US recession within the next 12 months to 45%, indicating substantial concern about Trump's trade policies. With a recession likely just steps away, fears of stagflation – slow growth and rising prices – are on the rise.
While some analysts deny a looming recession, the concern is palpable. Several countries have already offered to negotiate, but it's unclear if deals can be worked out quickly (or at all). Trump and his buddies are more concerned with non-tariff trade barriers, like currency manipulation, unfair tax policies, and sweatshop labor – factors that could make it difficult for nations to reach a speedy compromise.
- The average American consumer may end up paying an additional $2,100 per year due to reciprocal tariffs imposed by Trump, according to the nonpartisan Tax Foundation.
- The new tariffs on imports from various countries, including China (34%), Japan (24%), Vietnam (46%), and South Korea (25%), have led to concerns of a potential global recession.
- Economists are increasingly worried about stagflation, a condition characterized by slow growth and rising prices, as a result of Trump's aggressive tariff policies and the ensuing global trade war.
