Topline
President Donald Trump doubled down on his widescale tariffs on foreign imports Thursday, claiming the U.S. “WILL BE FAR STRONGER” as a result of his policies even as they’ve spurred chaos in the economy, with stocks plunging in response to Trump’s announcement while economists warn a recession could be on the horizon.
President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the … More
Key Facts
“THE OPERATION IS OVER” and “THE PATIENT LIVED, AND IS HEALING,” Trump said on Truth Social Thursday, referring to his tariffs, claiming the “prognosis” for the U.S. is that it “WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE.”
The tariffs have roiled the economy, with JP Morgan Chase’s chief economist warning Thursday the president’s policies “take the economy perilously close to slipping into recession,” as the tariffs are expected to broadly raise prices on most goods, shrinking consumer spending and Americans’ disposable income while raising inflation rates.
The stock market took a nosedive Thursday morning with the major stock indexes registering their worst day since September 2022, with major tech stocks like Apple and retail giants like Walmart and Nike particularly struggling.
Which Countries Are Affected By Trump’s Tariffs?
Nearly all of them, except for Russia, Belarus, North Korea and Cuba. Canada and Mexico were also not mentioned in Trump’s Wednesday announcement, as he has already previously imposed tariffs on the country’s U.S. imports. Among the most noteworthy tariffs were those levied on China, which will now see 54% tariffs on imports to the U.S.—as Trump raised the existing tariff rate by an additional 34%—along with a 46% tariff on goods from Vietnam, 20% on goods from the European Union, 32% on goods from Taiwan, 24% on goods from Japan and 26% on goods from India. Trump also imposed 10% tariffs on imports from the Heard and McDonald Islands—a tax that will likely be irrelevant for the Australian territory, as it is completely uninhabited.
Can Congress Stop Trump’s Tariffs?
Yes. While Trump has broad authority to enact sweeping tariffs, Congress could pass legislation that reins in his power and gives lawmakers more control over tariffs, the Congressional Research Service notes. Doing so could curb Trump’s broad tariffs and some of their fallout in the economy, though the GOP-controlled House and Senate are so far unlikely to try and restrict the president. Only four Republican senators broke with Trump and supported a resolution Wednesday against the president’s tariffs on Canada, and the House is unlikely to take up the proposal at all. Some Republicans have expressed some concerns about the tariffs’ likely impact on the economy, with Sen. Thom Tillis, R-N.C., telling CNN, “Anyone who says there may be a little bit of pain [from the tariffs]
before we get things right need to talk about farmers who are one crop away from bankruptcy.” Sen. John Kennedy, R-La., also acknowledged to the outlet the “worst-case scenario” of the tariffs causing a “slowing economy and a recession.” Both lawmakers voted in favor of Trump’s Canada tariffs Wednesday, however.
Key Background
Trump rolled out his tariffs Wednesday at the White House as part of a “Liberation Day” event, as the president delivered on one of his signature campaign policies. While Trump has long promised sweeping tariffs on foreign imports, he had so far imposed tariffs only on goods from Canada, Mexico and China—though even those had sparked widespread pushback, turmoil in the stock market and retaliatory tariffs. Trump has pushed ahead with his tariff agenda despite longstanding warnings from economists that doing so would result in higher prices for consumers, debunking the president’s claims that foreign countries would absorb the costs. Polls suggest Americans are largely opposed to the president’s agenda on tariffs, with a Marquette Law School poll released Wednesday finding 58% of U.S. adults believe tariffs hurt the economy.
Further Reading
