#TariffsPause

Trump Tariff Update – April 2025

President Trump’s aggressive tariff policies, enacted under national emergency declarations, have escalated global trade tensions. Key measures include a 10% baseline tariff on nearly all imports, with higher "reciprocal" rates targeting specific countries (e.g., 34% on China, 20% on the EU, and 46% on Vietnam) . These tariffs aim to reduce trade deficits and reshore manufacturing but have sparked retaliation, including China’s 125% tariffs on U.S. goods .

While the White House claims the tariffs protect national security and jobs, critics warn of economic fallout. The Penn Wharton Budget Model projects a 6% long-term GDP decline and 5% wage reduction, with middle-income households facing a $22,000 lifetime loss . Markets reacted sharply, with stocks plunging amid fears of stagflation .

Trump has paused higher tariffs for 90 days (excluding China) for negotiations, but the policy remains contentious, dividing Republicans and straining alliances .