How your purchases will be impacted after Trump’s universal 10% tariff comes into effect
Topics: Donald Trump, Money, News, US News, Politics
Gerrard Kaonga
Featured Image Credit: Win McNamee/Getty Images
Topics: Donald Trump, Money, News, US News, Politics
Donald Trump’s latest economic move sparked fear across the globe, but Americans will likely feel the burn from the tariffs as well.
Earlier this week, President Trump unveiled his economic plan to the world and argued it would allow for eventual American growth and prosperity.
April 2nd, affectionately referred to as ‘Liberation Day’, saw Trump announce that there would be significant tariffs on countries around the world, including the US’ many allies.
Speaking from the White House, the president said: “April 2, 2025, will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to 'Make America Wealthy Again.
Advert
“For decades our country has been looted, pillaged, raped and plundered from nations, near and far, from both friend and foe alike."
Trump has established a baseline tariff of at least 10 percent on almost all goods coming into the country, while key trading partners have been hit with customized tariffs, such as China (54 percent), Vietnam (46 percent) and the European Union (20 percent).
While many nations have said they will implement retaliatory tariffs as a response, this move by Trump will likely mean Americans will see an increase in prices on many goods.
As there is now a 10 percent tariff on imports, any imported good is likely going to become more expensive as American companies digest the import duties and adjust their prices in response.
China, Taiwan and South Korea were nations hit by reciprocal tariffs, which are when the US raises tariffs on foreign goods to match what countries already impose on the US.
This would mean the electronics the US imports from these countries could see a massive spike in price; for things like phones, TVs, computers.
As well as this, Trump previously announced 25 percent tariff on auto imports, meaning consumers could see prices of cars go up significantly as well.
These price increases also extend to some clothing and footwear, as the bulk of clothing shoes in stores like Walmart and Target are made outside the US.
The tariffs may impact other industries like food and drink, due to the US importing things like coffee beans from Latin American nations. When it comes to drink, the US import many wines and whiskeys from countries in Europe.
Despite these potential price hikes expected, Trump and his administration remain confident that they have made the right move and in the longterm America will be in a better position.