Wall Street comes to a painful realization: Trump was serious about steep tariffs all along

Key Points

  • Trump's 2024 campaign promises on tariffs were fulfilled this week with new duties on Chinese goods and a global tariff floor.
  • The president's actions were unilateral, bypassing Congress, and have led to a significant market drop.
  • New tariffs include a 25% duty on foreign-made cars, aiming to protect domestic industries.
  • The tariff strategy is seen as a long-term reordering of global trade, with little room for immediate negotiations.

Summary

President Donald Trump, during his 2024 campaign, promised significant tariffs on US trading partners, particularly targeting China with duties up to 60%. This week, he made good on those promises by signing an executive order that will increase tariffs on Chinese goods to 54% and impose a 10% tariff floor on most other countries. These actions, taken unilaterally, have caused a sharp decline in the stock market, with investors reacting to what could be the highest US tariffs in over a century. Trump's approach includes new 25% tariffs on foreign-made cars, aiming to protect domestic industries. Despite market reactions, Trump and his administration appear committed to these policies, viewing them as a strategic reordering of global trade dynamics. The use of the International Emergency Economic Powers Act allowed for swift implementation, bypassing traditional legislative processes. This move has sparked debate and concern over its economic implications, with some experts questioning whether the negative impacts will force a policy reversal.

yahoo
April 4, 2025
Stocks
Read article

Related news