Washington (AP) – President Donald Trump began on Thursday higher import taxes on dozens of countries, as well as the economic effects of his months of tariff threats, began to cause observable damage to the US economy.
Shortly after midnight, goods from more than 60 countries and the European Union were subject to a tariff rate of 10% or more. Products from the EU, Japan and South Korea are taxed with 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed with 20%. Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the United States
“I think growth will be unprecedented,” said Trump on Wednesday afternoon. He added that the United States had “recorded hundreds of billions of dollars of tariffs, but it could not provide a certain number for income, since” we do not even know what the final number is in relation to collective bargaining prices “.
Despite the uncertainty, the Trump White House is confident that the beginning of its broad tariffs will provide clarity across the path of the world’s largest economy. After companies understand the direction in which the United States is directed, the Republican administration is of the opinion that they can boost and hire recent investments on how to re-compensate the US economy as a production power.
So far, there are signs of self -inflicted wounds in America, since companies and consumers collect the effects of recent taxes alike. What the data has shown is a US economy that was changed by Trump’s initial tariffs in April, an event that led to Markt drama, a negotiating time and Trump’s final decision to start his universal tariffs on Thursday.
Risk of economic erosion
Economic reports show that the attitude to standstill began that the inflation pressure after April and the home values in the most critical markets decreased, said John Silvia, CEO from Dynamic Economic Strategy.
“A less productive economy requires fewer employees,” said Silvia in an analysis. “But there are more, the real wages of the employees lower the higher collective bargaining prices. The economy has become less productive, and companies cannot pay the same real wages as before. Actions have consequences.”
Even then, the ultimate transformations of tariffs are unknown and can play for months if not years elderly. Many economists say that the risk is that the American economy is more eroding than immediately collapsing.
“We all want it to be made for television where it is this explosion – it’s not that,” said Brad Jensen, professor at Georgetown University. “It becomes fine in the gears and slow down things.”
Trump promoted the tariffs to reduce the continued trade deficit. However, importers tried to avoid taxes by importing more goods before the taxes came into force. As a result, the retail weight of 582.7 billion US dollars was 38% higher for the first year of the year than in 2024. The total construction expenses dropped by 2.9% last year.
The economic pain is not narrow to US Germany, which sends 10% of its exports to the US market, in June with 1.9% with 1.9% a sack when the former tariff hikes were taken over by Trump. “The new tariffs will clearly consider economic growth,” said Carsten Brzeski, the global chief of the macro for Ing Bank.
Discorization in India and Switzerland
The lead over Thursday matched the Slapdash-Nature of Trump’s tariffs, which were rolled out differently, went back, delayed, increased, imposed by letter and desperately negotiated. The process was so confused that officials for critical trading partners were unclear at the beginning of the week whether the tariffs would start Thursday or Friday. The language of the command of July 31, to delay the beginning of the tariffs from August 1, only said that the higher tax rates would start in seven days.
Trump announced additional 25% tariffs on Wednesday on Wednesday, which is to be imposed on India for the purchase of Russian oil, which puts its total import tax to 50%.
A top body of Indian exporters said on Thursday that the youngest US tariffs will have almost 55% of the country’s outgoing shipments to have an effect to America and the exporter to lose their longstanding customers.
“The inclusion of this sudden cost calming is simply not sustainable. The edges are already thin,” said SC Ralhan, President of the Federation of Indian Export Organizations.
The Swiss executive department, the Federal Council, was expected to hold an extraordinary meeting on Thursday after President Karin Keller Sotter and other top Swiss officials had returned from a hastily agreed trip to Washington, 39% American tariffs for Swiss goods.
The import taxes still come to pharmaceutical medication, and Trump announced 100% tariffs to computer chips. This could leave the US economy in a place of suspended animation if it expects the effects.
The stock market remains solid
The employ of a law by the President from 1977 to explain an economic emergency to impose tariffs is also in the challenge. Trump could cause the upcoming decision from the hearing of the last week before a US Court of Appeal to find other legal justifications if the judges say that he had exceeded his authority.
Even people who worked with Trump during his first term are skeptical that things go smoothly for the economy, such as Paul Ryan, the former Republican spokesman for the Republican House, who emerged as a Trump critic.
“There is no other reason for this than the president who wants to increase the tariffs on his mood and opinions,” Ryan told CNBC on Wednesday. “I think chopped waters are ahead of us because I think they will have some legal challenges.”
Nevertheless, the stock market was solid during the recent tariff drama, with the S&P 500 index rose by more than 25% compared to April. The recovery of the market and the income tax reductions at Trump’s tax and expenditure measures that were signed on July 4 in the law have obliged the trust of the White House to speed up economic growth in the coming months.
On Thursday, the global financial markets transferred the tariff adjustments in the progress of Asian and European shares and US futures.
Brzeski warned: “While the financial markets for tariff announcements seem to have become deaf, we do not forget that their adverse effects on the economies will gradually develop over time.”
From now on, Trump is still ahead of an economic boom, while the rest of the world and American voters are waiting nervously.
“There is a person who can afford to be about the uncertainty he creates, and that is Donald Trump,” said Rachel West, Senior Fellow at the Century Foundation, who worked on working policy in the bids. “The rest of the Americans already pay the price for this uncertainty.”
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