Trump’s tariffs take effect, potentially upending global trade and prices

U.S. Tariffs take effect which is a new step in Trump’s Trade war. A new wave of tariffs championed by President Donald Trump officially took effect just after midnight Thursday, introducing sweeping import taxes that economists warn could raise prices for American consumers and businesses. The tariffs which Trump has promoted as a way to strengthen the U.S. economy and fix trade imbalances, target goods from dozens of countries including major trading partners such as India, Switzerland and South Africa. Some nations now face import taxes of up t0 39% with India’s rate set to rise to 50% in three weeks. 

“BILLIONS OF DOLLARS... WILL START FLOWING INTO THE USA,” Trump posted on Truth Social, accusing foreign countries of long exploiting the U.S.

While Trump has reached tentative trade frameworks with countries like the United Kingdom, the European Union, Japan, and South Korea, comprehensive deals remain elusive. Tariffs on Canadian goods rose to 35% on August 1, while talks with Mexico and China continue, temporarily sparing them from harsher penalties.

Indian Prime Minister Narendra Modi reaffirmed his opposition to trade terms that could hurt India’s agricultural and fishing sectors. “I know personally I will have to pay a heavy price for it... I am ready for that,” he said Thursday in New Delhi.

Trump has also wielded tariffs as a diplomatic tool in recent weeks, including in disputes between Thailand and Cambodia. Critics argue the tariffs may damage the U.S. economy and long-standing trade alliances. Many economists warn that American consumers will ultimately bear the brunt through higher prices.