The White House confirmed President Donald Trump will proceed with sweeping new tariffs effective Wednesday, escalating global trade tensions and stoking fears of economic stagflation as businesses and consumers brace for higher prices and supply chain disruptions. The measures include immediate reciprocal tariffs on nations taxing U.S. goods and a 25% duty on auto imports starting April 3, though specifics on scope and rates remain undisclosed.
Key Developments:
Tariff Rollout: Reciprocal tariffs take effect post-announcement, while auto tariffs begin April 3. Reports suggest a 20% universal tariff or targeted duties on select nations, potentially generating $6 trillion in revenue for rebates.
Global Backlash: Canada and Mexico vowed retaliation, with Prime Minister Mark Carney pledging to shield Canadian workers from “unjustified” U.S. measures.
Economic Risks: Analysts warn tariffs could cost U.S. households $3,400 annually (Yale Budget Lab) and trigger stagflation as input costs hit 3-year highs (ISM data).
Global Reactions:
Canada-Mexico Unity: Leaders emphasized safeguarding North American competitiveness amid threats to impose counter-tariffs.
Market Turmoil: U.S. stocks lost $5 trillion since mid-February, while global factory activity slumped in March.
Economic Warnings:
Stagflation Threat: Rising prices and contracting manufacturing activity signal a perilous mix of inflation and stagnation, per LPL’s Jeffrey Roach.
Corporate Anxiety: Fed survey shows CFOs expect tariffs to curb hiring and growth, with ISM noting tariff-driven input cost spikes.