The Trump Administration’s Tariff Evolution

April 7th, 2025

Jana Schodzinski

On Wednesday, April 2, 2025, U.S. President Donald Trump declared an economic emergency. He continued to announce tariffs with a minimum of 10% across all countries, which will take effect on April 9. However, some countries will receive a much higher rate. These include, but are not limited to, China, with a proposed 34% increase, Thailand, with a proposed 36% increase, and Vietnam, with a proposed 46% increase. These tariffs will, and to an extent, have already, led to extreme changes in both the global economy and American economy.

Mere days after the updated tariff policies were announced, China announced major retaliatory measures. On Friday, April 5, Beijing mirrored the Trump Administration’s 34% tariff increase on all imported goods. This was not a true mirroring, however, as the average U.S. tariff rate against China is 42.1% due to the preexisting levies on Chinese goods. This led to huge shifts in the global economy due to China’s influence in trade. An estimated $5 trillion worth of value has been lost from global stock markets since April 2 as a result of both China-U.S. trade relations and Trump’s other global affairs. In the United Kingdom, trade has hit its biggest low since 2020’s pandemic. In Hong Kong, the Hang Seng stock index nosedived, hitting its worst low since 1997. Europe’s stock indexes also took major hits, facing a 5% daily decrease.

Despite the horrors of the global market, America itself is also taking major hits. These difficulties are expected to be seen most prominently in lower-income Americans. Tariffs placed on countries such as Vietnam, Sri Lanka, and Cambodia which are the largest traders of low-cost products, such as groceries, will lead to everyday struggle. Yale University’s Budget Lab has formally estimated that as a result of Trump’s tariffs, the average American household will pay an additional $3,800 annually. The lab goes on to estimate the estimated rate of price increase in certain targeted products: leather (18% increase), apparel (17%), electrical equipment (10%), rice (10%), and nuts, fresh produce, fish, and other groceries (4%). Additionally, individuals in the lowest-income bracket may receive up to a 4% reduction in their post-tax incomes.

As the global trade war progresses, global retaliatory measures against the Trump administration’s tariffs will continue to shape the global economy, impacting the stock market at large, the average citizen, and everything in between.

Extemp Question: How will American citizens be impacted by the Trump Administration’s declaration of an economic emergency?