After walking and confusion, American prices come into force for dozens of countries

President Donald Trump began to make higher import taxes on dozens of countries on Thursday, while the economic benefits of his pricing threats have started to create winds for the American economy.

Just after midnight, goods from more than 60 countries and the European Union have become subject to rate rates of 10% or more. Products of the European Union, Japan and South Korea are taxed at 15%, while imports of Taiwan, Vietnam and Bangladesh are taxed at 20%.

Trump also expects the European Union, Japan and South Korea to invest hundreds of billions of dollars in the United States

“I think growth will be unprecedented,” said Trump on Wednesday afternoon. He added that the United States “took hundreds of billions of dollars in prices”, but it could not provide a specific figure for income because “we do not even know what the final number” concerning the rate rates.

Canada and the United States did not come on conditions renewed after a deadline imposed by Trump on August 1, which led to a 35% import tax on certain Canadian goods. The rate applies to goods not covered by the Canada-UX-Mexico (CUSMA) agreement, which governs trade between the three countries.

In addition to the general prices, Trump also threatened sectoral tasks. Import taxes are still on pharmaceutical drugs and Trump announced 100% prices this week on computer flea. This could leave the American economy in a suspended place of animation because it awaits the impact.

Trump, whose just midnight on social networks complained that countries, including the allies, “have benefited from the United States” in trade over the years. But in the case of Canada and Mexico, Trump signed Cusma during his first mandate.

The effects that should take place during the months

Trump has promoted prices as a way to reduce the persistent American trade deficit, although many economists think that the indicator alone does not mean economic weakness.

There are signs of self-inflicted injuries for the American economy following Trump’s plans, which recovered from the height of the coronavirus pandemic stronger than other G7 countries, although similar inflationary pressures.

Importers in general bought more goods before the prices entered into force. Consequently, the commercial imbalance of 582.7 billion US dollars for the first half of the year was 38% higher than in 2024. Total construction expenditure dropped by 2.9% over the past year, and the factory jobs promised by Trump have so far resumed job loss.

“A less productive economy requires fewer workers,” said John Silvia, CEO of Dynamic Economic Strategy, in an analysis note. “But there is more, higher prices drop the real wages of workers. The economy has become less productive, and companies cannot pay the same real wages as before. Actions have consequences.”

The use by the president of a 1977 law to declare an economic emergency to impose the prices is at the statement – and potentially directed the Supreme Court. The imminent decision of last week’s hearing before an American court of appeal could lead Trump to find other legal justifications if the judges say that he exceeded his authority.

However, the stock market was solid during the recent price drama, the S&P 500 index amounts to more than 25% compared to its lowest April. The market rebound and the income tax cuts in Trump’s tax and expenses were signed on July 4 gave the confusion of the White House that economic growth is required to accelerate in the coming months.

The final transformations of the prices could take place during the months, even years. Many economists say that the risk is that the American economy is regularly eroded rather than collapsing instantly.

“We all want it to be made for television where it is this explosion – it’s not like that,” said Brad Jensen, professor at the University of Georgetown. “It will be good sand in the gears and slow down things.”

Even the people who worked with Trump during his first mandate are skeptical that things are going well for the economy, like Paul Ryan, the former republican president of the Chamber.

“There is no kind of justification for this other than the president wanting to increase the prices according to his whims, his opinions,” Ryan told CNBC on Wednesday. “I think the agitated waters are ahead, because I think they will have legal challenges.”

Slapdash process

Thursday’s display corresponded to the Slapdash nature of Trump prices, which were variously deployed, remote, delayed, increased, imposed by letter and frantically renegotiated. Trump has announced executives to an agreement, with few specific details available so far in my cases.

India, for example, saw Trump on Wednesday announce an additional 25% rate to be imposed on August 28, for its purchase of Russian oil since the start of the war in Ukraine, relating to its taxes on total imports to 50%.

“The absorption of this sudden climbing of costs is simply not viable. The margins are already thin,” said SC Ralhan, president of the Federation of Indian export organizations, in a press release.

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India and the United States have had five cycles of negotiations on a bilateral trade agreement, but has not been able to get it so far, which had been a girlfriend’s relationship between the countries of Trump’s first mandate.

The process was so confused that the leaders of the main trade partners were not clear at the start of the week if the prices would start on Thursday or Friday. The language of the order of July 31 to delay the start of the prices from August 1 said that higher tax rates would begin in seven days.

On Wednesday morning, Kevin Hassett, director of the National Economic Council of the White House, was asked if the new prices had started at midnight Thursday, and he said that journalists should check with the office of the American commercial representative.