The Impact of Trump's Tariffs

Just before midnight, Trump claimed on social media that billions of dollars would begin flowing into the United States as a result of the tariffs.

However, while tariffs make a country's exports more expensive and less competitive, they are paid for upon import and are usually passed on to the customer.

The president wrote in block capitals: "The only thing that can stop America's greatness is a radical left-wing court that wants to see our country fail," referring to an ongoing case in the US Court of Appeals examining whether he exceeded his authority in imposing "reciprocal" tariffs.

The rates range from 41% for war-torn Syria to 10% for the United Kingdom and will be applied in addition to the usual tariffs applied to products imported into the United States.

This means that while Brazil's "reciprocal" rate is 10%, its overall rate is 50% after an executive order imposed an additional 40% tax effective Wednesday related to the impeachment trial of the country's former president, Jair Bolsonaro. The European Union is the only trading partner whose base rate—set at 15% after a framework deal—will include previous tariffs. This means, for example, that cheese, which is normally hit by a 14.9% import duty, will be taxed at 15%, not 29.9%.

Since the announcement late Thursday of last week, governments around the world have been scrambling to reach deals to avoid border taxes, which they fear will deter investors and lead to job losses.