World Desk

President Donald Trump on Thursday began enforcing a sweeping wave of higher import tariffs on dozens of countries, even as economic indicators suggest his prolonged trade threats are starting to take a toll on the US economy.

From just after midnight, imports from over 60 countries and the European Union are now subject to tariffs of 10% or more. Goods from the EU, Japan and South Korea face 15% tariffs, while products from Taiwan, Vietnam, and Bangladesh are taxed at 20%. Trump is also pressing the EU, Japan, and South Korea to commit hundreds of billions of dollars in investment in the US.

“I think the growth is going to be unprecedented,” Trump said on Wednesday, asserting that the US is collecting “hundreds of billions” in tariffs. However, he admitted no exact figure could yet be provided, as “we don’t even know what the final number is.”

Despite the economic uncertainty, the Trump administration maintains that the broad tariffs will ultimately provide clarity to businesses, encouraging them to invest and hire as the US pivots toward rebuilding its manufacturing sector.

However, recent data suggests otherwise. Analysts warn the economy has already begun to feel the effects of earlier tariffs, rolled out in April. Since then, hiring has slowed, inflationary pressures have grown, and housing markets in key regions have weakened, according to economist John Silvia.

“A less productive economy requires fewer workers,” Silvia noted, adding that rising prices from tariffs also reduce real wages.

The long-term impact of the tariffs remains uncertain. Economists caution the damage could unfold gradually, weakening the economy over time.

“We all want it to be made for television where it’s this explosion — it’s not like that,” said Georgetown University professor Brad Jensen. “It’s going to be fine sand in the gears and slow things down.”

While Trump has promoted the tariffs as a strategy to shrink the trade deficit, a rush to import goods before the deadline pushed the trade gap to $582.7 billion in the first half of 2025—38% higher than the same period last year. Construction spending has fallen by 2.9% year-on-year, and promised factory job growth has yet to materialize.

The lead-up to Thursday’s rollout reflected the often chaotic nature of Trump’s trade policy. Trade partners remained uncertain even days before implementation, as prior delays and adjustments added confusion. One July 31 order postponed the tariff start date from August 1 but vaguely stated that new rates would begin “in seven days.”

Even White House officials appeared unclear. When asked on Wednesday morning about the start time, National Economic Council Director Kevin Hassett referred reporters to the US Trade Representative’s Office.

Further escalating trade tensions, Trump on Wednesday also announced new 25% tariffs on Indian imports in response to its continued purchases of Russian oil, bringing the total duty on Indian goods to 50%.

India’s top exporters’ association warned the move could impact nearly 55% of its shipments to the US and severely disrupt long-standing trade ties. “Absorbing this sudden cost escalation is simply not viable,” said S.C. Ralhan, president of the Federation of Indian Export Organizations.

Additional tariffs are expected soon on pharmaceutical products and computer chips, with Trump announcing 100% duties on the latter—moves that could push parts of the US economy into what analysts describe as a “state of suspended animation."

Trump’s legal authority to impose the tariffs—based on a 1977 economic emergency law—is also under judicial review. A recent federal appeals court hearing could force the administration to seek alternative legal justification if judges rule he overstepped his powers.

Critics, including figures from Trump’s own political past, have raised red flags. Former Republican House Speaker Paul Ryan told CNBC, “There’s no rationale for this other than the president wanting to raise tariffs based on his whims.”

Despite the economic headwinds, US stock markets have remained strong. The S&P 500 has climbed over 25% since April, bolstered by income tax cuts included in Trump’s July 4 tax and spending package. The White House sees this as a sign of resilience and potential acceleration in economic growth.

Still, many Americans remain uncertain about what lies ahead.

“There’s one person who can afford to be cavalier about the uncertainty that he’s creating, and that’s Donald Trump,” said Rachel West, a senior fellow at The Century Foundation and former Biden administration labor policy adviser. “The rest of Americans are already paying the price for that uncertainty.”

Source: Agency