Trump has fulfilled a campaign promise by raising US taxes on foreign goods to narrow the gap with the tariffs that other countries impose on US products. This move is aimed at addressing the trade imbalance and encouraging other countries to lower their own import taxes. Economists, however, are concerned because tariffs are essentially a tax on importers that is usually passed on to consumers.

While it’s possible that the tariffs could lead to negotiations and the reduction of import taxes by other countries, the overall impact on consumers is still uncertain. Some businesses may absorb part of the cost of the tariff, while others may raise prices in response. There is a concern that consumers, who have recently experienced inflation, may not be willing to accept price increases and could reduce their purchases.

The executive branch has some power to implement tariffs through laws that specify the circumstances under which they can be imposed, such as when imports threaten national security or harm specific industries. In the past, presidents have generally conducted public hearings to determine if certain imports met those criteria. However, in his second term, Trump has sought to use emergency powers to impose tariffs more freely, citing national emergencies as pretext.

The US tariffs are generally lower than those charged by other countries, with an average weighted tariff of 2.2% compared to the European Union’s 2.7%, China’s 3%, and India’s 12%. Other countries also tend to have higher tariffs to protect their farmers. The Trump administration has used its own calculations to come up with far greater tariffs that they claim other economies impose on the US. Previous administrations agreed to these tariffs as part of trade negotiations that formed the basis of the global trading system.

Source: https://www.euronews.com/business/2025/04/03/what-to-know-about-president-donald-trumps-vast-array-of-tariffs