The global economy is not just shaped by technology or innovation — it’s governed by decisions made behind closed doors, often under the guise of economic strategy. One such decision, the imposition of tariffs, is anything but neutral. It is an instrument of pressure, a marker of priority, and increasingly, a reflection of geopolitical posture.
Tariffs have reemerged as a centerpiece of American economic policy, not as quiet fiscal levers but as loud, disruptive statements. The Trump administration’s recent directive — a flat 10% base tariff on all imports and a sweeping set of reciprocal tariffs targeting nearly 90 countries — represents a radical reorientation of U.S. trade policy. In an interconnected world already strained by inflation, global supply chain challenges, and diplomatic fragility, these decisions matter deeply — and immediately.
What Are Tariffs?
At their core, tariffs are taxes on imported goods, imposed by governments to influence the cost and flow of trade. By making foreign products more expensive, tariffs aim to redirect demand toward domestic alternatives, protect national industries, or serve as economic leverage.
Tariffs are not new. According to a previous AFROTECH™ report, the very first law enacted by the U.S. Congress in 1789 was a tariff. Over time, they have evolved into symbols of national economic posture. In 1930, the Smoot- Hawley Tariff Act, implemented during the Great Depression to protect U.S. agriculture and manufacturing, led to a collapse in global trade and exacerbated the economic crisis. The lesson? Tariffs, when used aggressively and without multilateral coordination, often backfire.
By the mid-20th century, the United States had pivoted to free trade, culminating in agreements such as the North American Free Trade Agreement (NAFTA) in 1994 and its successor, the United States-Mexico-Canada Agreement (USMCA) in 2020. However, under President Trump, the U.S. has taken a sharp turn back toward economic nationalism, using tariffs not just for protectionism but also as a political and diplomatic tool — applied not only to influence trade but also to confront issues ranging from immigration to fentanyl trafficking.
How And When The New Tariffs Work
Based on information from a live CNN tracking report, the current tariff policy operates on two levels:
- Beginning 12:01 a.m.. ET, on April 5, a 10% universal tariff will be imposed on all imports, regardless of country of origin.
- At 12:01 a.m.. ET, on April 9, an additional layer of reciprocal tariffs — targeting approximately 90 countries — will go into effect. These duties range from 11% to 50% based on the severity of the trade imbalance each country has with the United States.
Rather than relying on established international frameworks, the administration developed its own formula: A country’s trade deficit with the U.S. is divided by its total value of exports to the U.S., and the result is halved. Commerce Secretary Howard Lutnick described the method as “kind” and “mathematically reciprocal.” Economists, however, argue it oversimplifies complex trade dynamics and fails to account for global production networks and mutual dependency.
Notably, shipments already in transit before April 5 may be exempt depending on how and when they were shipped, offering limited relief for some importers.
Who’s Being Hit the Hardest? List Of Tariffs By Country
A CBS News report noted that although nearly 90 nations are affected, a core group of countries face the steepest penalties. The 10 highest reciprocal tariffs include:
- Lesotho – 50%
- Saint Pierre and Miquelon – 50%
- Cambodia – 49%
- Laos – 48%
- Madagascar – 47%
- Vietnam – 46%
- Sri Lanka – 44%
- Myanmar (Burma) – 44%
- Falkland Islands – 42%
- Syria – 41%
Larger economic players were also targeted with significant reciprocal rates:
- China – 34% reciprocal tariff, in addition to a pre-existing 20% tariff, totaling 54%
- Thailand – 36%
- Switzerland – 31%
- India – 27%
- Japan – 24%
- South Korea – 25%
- European Union – 20%
AFROTECH™ further revealed that even U.S. allies like Canada and Mexico, while spared from the reciprocal list, are still affected by existing sector-specific tariffs — most notably the 25% levy on non-USMCA-compliant automobiles. Canada responded with a counter-tariff of 25% on U.S. vehicles not compliant with the agreement. The country had previously responded with a $21 billion counter-tariff package, which includes targeted goods such as orange juice, coffee, and appliances. A $87 billion second round of tariffs has been temporarily paused but remains on standby, indicating that this trade conflict is far from resolved.
What Does This Mean For American Consumers?
Though framed as a strategy to protect American industry, tariffs are ultimately paid by U.S. importers — and passed on to U.S. consumers.
The Tax Foundation estimates the average American household will pay $2,100 more per year under this policy due to increased prices across consumer categories.
Key areas of economic impact include:
- Automotive: Tariffs could add $3,000 or more to the cost of a vehicle. Volkswagen has already begun listing tariffs as a line item on vehicle price stickers, while Stellantis (Chrysler, Dodge, Jeep, Ram) announced temporary layoffs tied to disrupted production timelines.
- Retail and Electronics: Companies such as Apple, Best Buy, and Target are navigating increased inventory costs, some of which will inevitably be passed on to consumers.
- Food: With nearly half of U.S. fruits, nuts, and vegetables imported from Mexico, produce prices are expected to rise. This disproportionately impacts working-class families already vulnerable to food insecurity.
This economic strain is particularly severe for Black and Brown communities, who already spend a more significant portion of their income on essentials. For many, these price increases aren’t just inconvenient — they’re destabilizing.
Do Tariffs Deliver On Their Promises?
Historically, the answer has been mixed at best. Tariffs may offer short-term protection to select domestic industries, but over time, they tend to provoke retaliatory trade barriers, destabilize international markets, and drive up costs for consumers.
The Smoot-Hawley Tariff Act remains a cautionary tale. Enacted to protect American agriculture, it led to a 40% decline in U.S. exports and imports and deepened the Great Depression. Many economists fear that this new round of tariffs — particularly given its size and scope — risks a similar disruption in the global economic order.
What’s Next For All Involved?
The Trump administration’s tariff policy is not just about economics. It’s a recalibration of how the U.S. engages with the world — a deliberate rejection of multilateral trade norms in favor of national leverage and influence. But this strategy comes with consequences: retaliatory actions from allies, rising domestic costs, and the potential erosion of U.S. leadership in global commerce.
Whether this gamble pays off in the long run remains to be seen. But in the short term, the burden is already falling — not on foreign governments or overseas exporters — but on American families, businesses, and workers.
