Trump's implementation of tariffs marks a surprising development. However, this assertion holds truth. - Trump's imposition of tariffs experiencing a significant increase - a reality confirmed
In the tumultuous world of global trade, one idea that caused significant stir was Donald Trump's tariff policy. This policy, a key component of his "America First" economic strategy, was proposed in 2025.
At a time when tariffs were not a part of any existing trade agreement, Trump saw them as a means to protect American workers, industries, and address trade imbalances, particularly with China. He believed tariffs could counter "unfair trade practices," including persistent trade deficits and non-reciprocal tariff and non-tariff barriers imposed by other countries.
Upon his second inauguration in January 2025, Trump pledged to overhaul the trade system to safeguard American jobs and families. He declared national emergencies related to fentanyl trafficking and used those to impose tariffs, notably raising tariffs on Chinese goods to 20% and peaking U.S. tariffs on Chinese goods at 145%.
Trump's advisors, including Peter Navarro, framed this move not as negotiation but as addressing a "national emergency" caused by an out-of-control trade deficit. This approach emphasized tariffs as a means to pressure trade partners for reciprocal treatment and to discourage reliance on foreign goods, especially from China.
The tariffs were escalated in stages, including steel and aluminum tariffs at 25%, later increased, and plans for reciprocal tariffs on all countries maintaining trade barriers against the U.S. These tariff decisions sometimes created confusion abroad due to their unpredictability and broad scope.
The tariff policy was part of a broader "America First" framework described in the July 2025 U.S.-EU trade deal, where Trump emphasized rebuilding U.S. industrial power and energy dominance while addressing decades of trade imbalances with key partners.
The tariff policy was a controversial topic, particularly in the context of USA-China trade relations. Legal challenges arose, with courts temporarily blocking some of the sweeping "Liberation Day" tariffs but later reinstating most while legal appeals proceeded.
As we look back at this period, it's interesting to note that the tariff policy, though not yet implemented, is once again a topic of relevance. The recent trade agreement between the EU and the USA has brought this issue back into the spotlight.
The original article, titled "Stock Market Chaos: How Did Donald Trump Come Up With His Tariff Idea?" was published in April 2025. It provides a comprehensive overview of Trump's tariff idea and its development, but does not discuss the impact of the tariffs on the stock market or the reaction to them in detail.
As we move forward, it will be fascinating to see how the recent trade agreement between the EU and the USA will influence the implementation and future of Trump's tariff policy.
The Commission, with its expertise in trade and economic matters, has also been consulted on the draft directive associated with Trump's tariff policy, as finance institutions grapple with the potential impacts of investing in a stock-market influenced by the uncertainty brought about by the tariffs. This unfolding scenario heralds a time of significant change for both American and European stock markets.
