Trump increased tariffs on all Chinese products from 10% to 20%, ostensibly because China hasn't taken enough action to stop the flow of synthetic opioids to the United States. He also eliminated the duty free de minimus of $800 on all products brought across the border with Mexico, for the same reason. In addition, he announced that the 25% tariffs are set to go into effect at midnight tonight.
Although I won't go deeply into the economics of tariffs here, Investopedia describes them very well.
Tariffs are a round-about way to collect more taxes from consumers—us. And it's done without reducing our income taxes. We're taxed on our income; we pay sales taxes when we purchase an item; and then we pay for products, to cover the tariffs. The tariff money goes to the government. Who pays the tariff? We, the end consumer, pays the cost of the tariff.
Investors have already responded by a sell-off in the stock markets, and stock futures are showing a lower opening in the morning. Although the stock market is not the economy, in the United States the market and investor sentiment are intimately tied to the economy.
President Boasts Trillions In Investments from Other Countries
Trump Pauses Military Aid to Ukraine
Lastly, but definitely not the least important, President Trump has paused aid to Ukraine until further notice, after the very public breakdown in relations. Last Friday, Trump lost a half-trillion dollar deal with Ukraine after he felt offended by Ukrainian President Zelenskyy.
Zelenskyy, after the deal fell apart, went to Europe and began negotiations.
Further Amendment to Duties Addressing the Synthetic Opioid Supply Chain in the People's Republic of China – The White House
Amendment to Duties to Address the Situation at our Southern Border – The White House
Another Historic Investment Secured Under President Trump – The White House
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