#TrumpTariffs In April 2025, U.S. President Donald Trump fulfilled his campaign promises by increasing tariffs on the United States' trade partners, with the actual tariff rate reaching 23%, which is significantly higher than previous rates.

Impact on American Companies

According to a report published by The Economist, these tariffs may be more painful for American companies compared to the previous wave, as some companies like Stanley Black & Decker have begun shifting supply chains away from China, while other companies like Louis have put plans in place to deal with the new tariffs.

Controversial Methodology

The new tariffs were calculated based on the U.S. trade deficit with each country, where the deficit is divided by the total exports coming from that country to the United States, and then the final number is halved. This method has raised concerns among economists, as Deutsche Bank warned about its impact on the stability of the U.S. dollar and increased risks of economic recession.

Global Reactions

Financial markets experienced sharp declines following the announcement of the new tariffs, increasing economic uncertainty. Additionally, some countries began taking retaliatory measures, which could escalate global trade tensions.