Trump’s 10% tariffs kick in today. Why the biggest ones are yet to come.

 Trump’s 10% Tariffs Kick In Today. Why the Biggest Ones Are Yet to Come.

By Steven Orlowski, CFP, CNPR

Today marks a pivotal moment in the global economy as former President Donald Trump’s long-anticipated 10% tariffs officially take effect. These across-the-board levies target a broad swath of imported goods and signal a dramatic escalation in Trump’s renewed “America First” trade agenda, should he return to the White House in 2025. But economists, trade experts, and business leaders agree: this is just the opening salvo. The most sweeping and potentially disruptive tariffs are still on the horizon.

A Blanket Tariff With Broad Reach

Unlike past trade policies that targeted specific countries or industries, the 10% tariff applies indiscriminately to nearly all imports into the United States. Consumer electronics, apparel, industrial parts, automobiles, and even some food products are affected. This shift represents a sharp departure from decades of bipartisan support for freer global trade, and underscores Trump’s conviction that tariffs are not only a negotiating tool—but a permanent fixture of U.S. economic strategy.

According to Trump and his advisors, the goal is simple: reduce the U.S. trade deficit, revive domestic manufacturing, and pressure foreign governments—especially China—to offer more favorable trade terms.

Critics, however, argue that the policy is more likely to spark inflation, raise costs for American businesses and consumers, and trigger retaliatory tariffs from trading partners. The U.S. Chamber of Commerce estimates that the average American household could face more than $1,700 in additional annual costs due to the tariffs.

Why the Biggest Tariffs Are Still to Come

While today’s 10% tariff is significant, it may just be the beginning of a broader, more aggressive tariff campaign. Trump has proposed raising tariffs on Chinese imports to 60% or higher, and hinted at a universal 10% baseline tariff across all imports. In effect, this would impose an additional cost on every product entering the U.S.—a tax on global trade itself.

Such policies would dwarf the tariff battles of Trump’s first term and could plunge the global trading system into uncertainty. The World Trade Organization (WTO) has already signaled concern, and U.S. allies in Europe and Asia are preparing countermeasures.

“This is not about trade disputes anymore,” said Maria Thompson, senior economist at Global Insight Partners. “It’s a wholesale rejection of the multilateral trade order the U.S. helped build after World War II. If these additional tariffs go through, we’re talking about a global trade war on a scale we haven’t seen in generations.”

Industry Response: Bracing for Impact

American businesses are already adjusting to the new reality. Retailers, automakers, and technology firms are scrambling to renegotiate supply chains, pass costs along to consumers, or lobby Congress for carve-outs and exemptions.

Ford and General Motors have warned that the tariffs could add thousands of dollars to the cost of a new vehicle. Apple and other tech giants face rising prices on imported components. Walmart and Target are reassessing product sourcing and pricing strategies ahead of the back-to-school and holiday shopping seasons.

“We’re entering an era of chronic trade friction,” said Janet Liu, head of trade policy at the U.S. Retail Federation. “For the foreseeable future, businesses need to assume that tariffs are not a temporary negotiating tool—they’re a long-term reality.”

Political Chessboard

Trump’s tariff move is as much about politics as economics. With the 2024 election in full swing, he’s betting that aggressive trade policies will resonate with working-class voters in key battleground states. Protectionist rhetoric has been a hallmark of his campaign stump speeches, often paired with promises to bring jobs back from China and Mexico.

But the long-term consequences may be far more complex. If implemented in full, Trump’s tariff plan could strain relationships with allies, undermine global economic stability, and upend decades of economic integration.

What Comes Next?

With the 10% tariffs now in place, attention turns to how trading partners respond—and whether Trump follows through with his threats of more dramatic tariff hikes. The Biden administration, meanwhile, is walking a tightrope, trying to avoid alienating blue-collar voters while maintaining global alliances and stable markets.

As businesses and consumers brace for the ripple effects, one thing is clear: today’s tariffs are just the first chapter. The bigger—and potentially more disruptive—moves are still to come.

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For updates on trade policy and economic impact, follow Steven Orlowski on Blogger (https://expertiseforeveryone.blogspot.com/).