The Impact of Tariffs: Global Trade War
Our country and its taxpayers have been taken advantage of for more than 50 years, but that is going to change, Trump stated on Wednesday during a ceremony in the Rose Garden.
On the same day, Trump declared a US economic emergency and announced tariffs of at least 10% on imports from all countries. The rates will be even higher for 60 countries and trading blocs that have a significant trade deficit with the US. According to President Trump, "This is Liberation Day."
Some of the cost of the new taxes will likely be passed on to consumers, with low-income households expected to face the greatest impact, according to an analysis from Yale Budget Lab released on Wednesday.
Households earning an average disposable income of around $43,000—some of the lowest in the nation—are poised to face a significant 2.3% decline in their disposable income due to the tariffs announced on Wednesday. In stark contrast, those in the highest income bracket, with disposable incomes over $500,000, will only experience a minor decrease of 0.9%.
Looking ahead to all tariffs scheduled for 2025, the situation worsens for lower-income households, which could see their disposable income plummet by 4%. Meanwhile, the wealthiest households would face a mere 1.6% reduction. This disparity underscores the disproportionate impact of these tariffs on those who can least afford it.
“A tariff is what we call a regressive tax because it pinches families at the bottom more than it pinches families at the top. ”
President Trump unveils his long-promised, sweeping set of tariffs on imports.
Including tariffs on all imported automobiles of 25% which went into effect at 12:01 am ET on Thursday.
According to the CIA World Factbook, other territories with no economy and no population were also impacted by the sweeping tariffs announced by President Trump.
Australian external territory in the southern Indian Ocean, Heard Island, and McDonald Islands slammed with a 10% tariff, and so are the Cocos Islands 600 inhabitants send 32% of its exports to the US, according to the CIA World Factbook, they now face a 10% tariff.
U.S. trading partners are anticipated to respond with retaliatory actions.
China, which faces a 54% import tax, intends to impose an additional 34% tax on US goods beginning next week.
India on tariffs! 'The era when a few powers underwrote the international system is over. The world is moving to an era of self-help. Every region needs to look out for itself' ~ The external affairs minister of India, S. Jaishankar.
The US Stock Market tumbles on its opening bell Thursday. After-hours stock trading coverage from CNN: Latest updates on post-market movers, S&P 500, Nasdaq Composite and Dow Jones Industrial Average futures.
The universal 10% tariffs are scheduled to take effect on Saturday, April 5. Additionally, further duties—reciprocal tariffs will be imposed on approximately 60 countries starting on April 9.
Reciprocal tariffs are calculated as the tariff rate necessary to balance bilateral trade deficits between the U.S. and each of our trading partners, according to the U.S. Trade Representative. That means they do it to us, and we do it to them, Trump said.
YAME Digital reached out to government functionaries in Freetown to understand the impact of tariffs on Sierra Leone goods entering the United States and the broader implications of this trade war on Africa.
Based on our understanding, Sierra Leone has a small business entity that operates independently, resulting in minimal impact.
YAME Digital is currently gathering data that will be made available to the public soon. Stay tuned!
What online shoppers need to know about the sledgehammer hit to 'the led by direct-to-consumer retailers' such as Temu and Shein Fashion Industry.
Nothing comes cheap anymore! Imported goods sent through the postal network valued at or under $800 would now be subject to a duty rate of either 30% of their value or $25 per item. With the rate increasing to $50 per item after June 1.
The executive order signed on Wednesday closes a trade loophole known as "de minimis," which has allowed low-value packages from China and Hong Kong to enter the United States free of duties.
Temu and Shein imported goods from China and Hong Kong sent outside the international postal network and valued at or under $800 would now be subject to all applicable duties.
The trade surplus that Trump never mentions
The US has a trade surplus from export of services which are now vulnerable to tariffs from the world — Aljazeera
Theo Edwards for YAME Digital