Trade Tensions 2.0: What Trump's Tariffs Mean Today

A tax on penguins. A stock market crash. An incoming recession?

As of April 5, 2025 at 12:01 a.m. EDT. a 10% tariff baseline was implemented on all countries, an action enforced by
President Trump’s administration. The effects of his tariffs, though relatively premature, are already causing global
dilemma, concern, and hysteria.

Before diving into the logistics, what exactly is a tariff? And why does the United States feel the need to implement them with nearly every country in the world?

To put it simply, a tariff is a tax imposed on goods or services from a DIFFERENT country that are entering a
country. In our case, the United States has implemented a tariff on every country’s products, services, and goods
entering the U.S. Tariffs typically vary per the country that is enforcing the action, and you may have heard that the Trump Administration is enforcing a “reciprocal tariff”. 

According to the official White House fact sheet, the reciprocal tariffs have a baseline tax of 10%. This means every country in the world regardless is subject to a minimum 10% taxline. However, the taxline can and will be increased depending on the country. Countries that the United States deems that have the largest trade deficits will be subject to a HIGHER, individualized, reciprocal tariff. (The White House) Trade deficits in this case are defined as an imbalance in trade, where a country is importing goods MORE than exporting goods. Thus, any country that the United States imports more from rather than exports to will be subject to higher taxes.

We can see this in effect already. A reciprocal tariff on China is buffered to a staggering 34%, and the European
Union will face a 20% reciprocal tariff. Unfortunately for U.S consumers, these tariffs will persist, until “President
Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied,
resolved, or mitigated”. (The White House)

Therefore, it's uncertain when these tariffs will end, or at least be limited. But why does this pose a
problem for the average American consumer?

Tariffs historically have been proven to raise prices heavily for consumers. According to researcher
Alex Russel from UC Davis, tariffs can simply increase the overall cost of living and limit the range of
products that we can get (Russel.) With this in mind, individuals in the US will face increased prices in
nearly every aspect of their lives, especially since increased tariffs are placed on countries that we increasingly import goods from. Furthermore, we can see that tariffs can have an almost immediate effect. PBS news reports that produce from Mexico could rise rapidly after the tariffs are in effect (PBS News.)

This is undeniably a big issue for America’s middle and lower class people. Just to put things into
perspective, the U.S. Department of Agriculture ITSELF states that as of 2020, “Mexico accounted for 77
percent of U.S. fresh vegetable import volume” (Davis and Lucier.) Even from just one country, we’re seeing a significant price hike on everyday foods that Americans rely on, including the beloved avocado.

However, food is not the only issue. As reported by The Guardian, NASDAQ has borne the majority of
the grunt, with a sharp 20% decline from its peak. Furthermore, in one day NASDAQ has fallen by 5%,
and the U.S. stock market has seen 6.4 TRILLION dollars wiped off the market. (The Guardian). The response from Trump? “Hang tough”

The introduction of tariffs executed in a flawed manner leaves many Americans worried, and impacts
all parts of not only the economy, but society as a whole. While the full impact remains to be seen, economists and many other experts agree it’s clear that these measures will continue to affect the daily lives of American consumers already bearing the burden of excessive taxes. Whether this trade war
leads to long-term improvements or deeper economic turmoil remains uncertain. But one thing is for sure: the consequences of these decisions are far-reaching, and as we brace for what’s ahead, the world watches closely. "Hang tough," indeed.