How much can one policy shake up the global economy? With President Trump's new tariffs officially kicking in, the US effective tariff rate has soared above 18%—the highest level since the Great Depression. More than 60 countries and the EU now face stiff new import taxes, with levies ranging from 10% to 50% on everything from tech components to toys. Trump also announced a 100% tariff on non-US computer chips and a punishing 50% rate on Indian goods linked to purchases of Russian oil.
The economic side effects are showing up fast:
- India faces up to an $8 billion hit in sectors like textiles and chemicals, though overall GDP risk remains contained thanks to trade diversification (full analysis)
- Swiss goods see 39% tariffs—with thousands of jobs at risk—while Japan and South Korea managed lower 15% rates after hard bargaining
- Exporters from affected nations scramble to reroute shipments and reconsider US market exposure
- Major US trading partners signal plans to shift trade elsewhere, undermining longstanding commercial ties
But will these tariffs really "bring back" US manufacturing? Or are they sowing seeds of stagflation and global tension? Early data shows:
- US prices expected to rise 1.8% in the short term, according to the Yale Budget Lab
- This is equivalent to a $2,400 loss of income per average household
- Unemployment claims have hit 1.97 million—the highest level in nearly four years
The human angle? Businesses and workers alike are entering a high-uncertainty era, as multinational firms and small exporters navigate a world where trade deals are "more sketch than signed"—and retaliatory moves are only beginning.
