WASHINGTON (AP) – President Donald Trump was due to officially launch imposes a higher import tax In dozens of countries on Thursday, as his months of tariff threat economic fallout has Start creating visible damage For the US economy.
The White House said goods from more than 60 countries will face tariff rates of over 10% shortly after midnight and the European Union will face tariff rates of over 10%. European Union, Japanese and South Korea products are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20%. For places like the EU, Japan, South Korea, and more, Trump also hopes they will invest hundreds of millions of dollars in the US
“I think growth will be unprecedented,” Trump said Wednesday afternoon. He added that the US is “incidenting hundreds of billions of dollars in tariffs,” but he was unable to provide a specific figure of revenue because “we don’t even know what the final number is” regarding tariff charges.
Despite the uncertaintyTrump White House believes that his widespread tariff development will become clear about the world’s biggest economic path. As businesses understand the direction the US is heading, the administration believes they can start hiring in a way that will increase new investments and allow the US economy to be readjusted as a manufacturing force.
But so far, there are signs of wounds in America as businesses and consumers are pretending to be braces due to the impact of the new tax. What the data showed is Trump’s first tariff rollout in April, market drama, negotiation period, and the US economy that led to Trump’s ultimate decision to launch his universal tariff on Thursday.
Since April, economic reports have shown that employment has started to stall, inflationary pressures have risen, and household values in key markets have begun to fall, says John Silvia, CEO of Dynamic Economic Strategy.
“There are fewer workers in a less productive economy,” Sylvia said in an analysis note. “But the higher the tariff prices, the lower the real wages of workers. The economy is less productive and businesses cannot pay the same real wages as before. There are consequences for actions.”
Still, the ultimate change in tariffs is unknown and could unfold over months, if not years. Many economists say the risk is that the US economy is steadily eroding, rather than immediately collapse.
“We’ve been working hard to get into the world,” said Brad Jensen, a professor at Georgetown University. “It’s going to be fine sand in the gear and slow things down.”
Trump has promoted tariffs as a way to reduce a sustained trade deficit. However, importers tried to avoid taxes by importing more goods before the tax came into effect. As a result, the $582.7 billion trade imbalance in the first half was 38% higher than in 2024. Total construction spending has dropped by 2.9% over the past year, and factory jobs that Trump has promised have so far resulted in job losses.
The lead to Thursday fits the nature of Trump’s tariff slap dashes. It has been expandedwalks, delays, increased, imposed by letters and desperately renegotiated.
The process is so confusing that officials from key trading partners were unclear earlier this week, whether prices start on Thursday or Friday. The language of the July 31 order, which delays the commencement of tariffs from August 1, said higher tax rates would start in seven days.
On Wednesday morning, White House National Economic Council director Kevin Hassett, when asked whether new tariffs had begun late Thursday night, reporters said they should check with the US trade representative’s office.
Trump announced on Wednesday that an additional 25% tariff would be imposed on India on Russian oil purchases, raising the total import tax to 50%. He says import taxes are still coming to pharmaceutical drugs and has announced a 100% tariff. Computer chipmeaning that the US economy could remain at a break in animation as it awaits impact.
The president’s use of the 1977 law to declare an economic emergency to impose tariffs is also challenging. Impending ruling from last week Ask the US before appealing to court If the judge says he has surpassed his authority, Trump could find other legal justices.
Even those who worked with Trump during his first term are skeptical that things will go smoothly for the economy, such as former Republican House Speaker Paul Ryan, who emerged as a Trump critic.
“There is no reason for this any other reason other than the president who wants to raise tariffs based on his whim,” Ryan told CNBC on Wednesday. “I think they have some legal challenges, so I think the choppy water comes first.”
Still, the stock market has been strong in recent tariff dramas, with the S&P 500 index climbing more than 25% from its low in April. Market rebound and Trump tax and spending measures income reduction Sign the law On July 4th, the White House gave confidence that economic growth is expected to accelerate in the coming months.
For now, Trump still foresees an economic boom, but the rest of the world’s voters are nervously waiting.
“There’s one person who can afford to be a cavalier about the uncertainty he’s creating: Donald Trump,” said Rachel West, a senior Century Foundation fellow who worked for the Biden White House on Labor Policy. “The rest of the Americans are already paying for that uncertainty.”
