Trump Brings Out First Wave of Tariffs

President Donald J. Trump has enacted the first wave of tariffs on foreign imports in his economic plan of "America First" domestic revitalization.

Starting on February 1st, the president will enact a sweeping series of tariffs on America's three largest trading partners: China, Canada, and Mexico. He promised a flat 25% tariff on most Canadian and Mexican goods, while a 10% tariff on many Chinese products on top of his already high tariffs implemented during his first term.

These tariffs will surely bring a lot more revenue to the federal government. A 10% tariff on China alone could bring up to hundreds of billions of dollars in trade duties, while the other tariffs could supplement nearly $100 billion. Additionally, these tariffs will play a crucial role in the president's plan to reform the country's position in global trade into less of a net importer, but rather a more balanced trade partner.

These tariffs could pressure many companies to move their institutions here, large or small. Combined with tax breaks and subsidies, the president's administration will benefit the largest companies seeking to make new facilities and jobs here at home, while the process may be more difficult for smaller businesses who may not be able to keep up do to over competition and financial risk.

These tariffs, however, could create a toll for American consumers. Especially a 25% tariff on some of our two biggest trading partners will almost certainly drive prices up, thus leading to inflation. This may include many of our imports from our North American neighbors like fruit, corn, maple syrup, honey, oil, and precious metals.

On Friday, stocks plunged in reaction to the impending enactment of these tariffs. However, these tariffs have bolstered the value of the USD and gold over the past few weeks, and in many cases even crypto became bullish. Many of the stocks which pledged to make more business in America have also reacted positively, while the unfortunate rest did not.