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April 1, 2025

Andrew Campbell 

President Donald Trump is demonstrating that a key component of his "America First" foreign policy is tariffs. The proposed tariffs' size and scope are reminiscent of the 1930 US Smoot-Hawley Tariff Act. During this time, the phrase "America first" was also frequently used to describe a focus on domestic policy and high tariffs.

Trump has stated that his tariffs are "worth the price that must be paid" even though they will inflict "some pain." Through stricter import regulations and production reshoring, this initiative seeks to strengthen American industry and technological sovereignty. The nonpartisan Peterson Institute for International Economics recently estimated that Trump's tariffs may increase the average US household's annual expenses by more than US$1,200. Trump's initiatives may have begun to boost American manufacturing. It's still unknown how these reforms will affect the US economy in the long run.

Trump's plan to impose 25% tariffs on Canada and Mexico. He is imposing 10% tariffs on imports from China, though. In the meantime, he continues to advocate for tariffs on the EU. The majority of China's retaliatory actions were imposing duties on a huge range of US imports. Trump's suggested tariffs on China, Canada, and Mexico might just be the first shots in a larger rivalry. That might be the case in Europe and elsewhere. A bigger trade war appears to be on the horizon.