The United States has introduced a new 10% tax on nearly all imported goods, a move that went into effect Saturday and is causing significant concern among American businesses, consumers, and global trading partners.
This universal tariff, announced by President Donald Trump, is the highest such levy imposed by the U.S. in nearly a century and has sparked fears of an economic downturn.
The tariffs, which are part of Trump’s broader trade strategy, aim to restore American manufacturing and balance trade deficits. Trump has framed the tariffs as an economic tool to revive U.S. factories, address foreign trade imbalances, and reduce the national deficit, ultimately bringing more money to the U.S. Treasury. However, economists warn that the plan could backfire and lead to higher prices for American consumers, potentially triggering a recession.
The tariffs affect a wide range of products, with particularly high rates for countries like China, Vietnam, Cambodia, and Bangladesh. On top of the 10% baseline tariff, many countries face reciprocal tariffs that range from 25% to 49%. As a result, the prices of everyday goods such as clothing, electronics, and vehicles are expected to rise, further squeezing U.S. consumers who are already dealing with inflationary pressures.
Retailers are likely to pass the cost of the tariffs onto consumers, either through higher prices or reduced availability of foreign-made goods. The Federal Reserve has acknowledged the impact of the tariffs, noting that they could push inflation higher and slow down economic growth. The Tax Foundation estimates that the average American household will pay an additional $2,100 annually due to the tariffs, with the U.S. import tax rate soaring to 19%, the highest since the 1930s.
Furthermore, analysts at JPMorgan forecast that the tariffs could add $660 billion to Americans’ tax burdens, which would result in a 2% increase in inflation. The combined effects of rising prices and reduced consumer purchasing power could trigger a recession in both the U.S. and global economies, analysts warn.
While Trump’s supporters argue that the tariffs will strengthen the U.S. economy by encouraging domestic production, the unintended consequences for American consumers and the potential global economic fallout could overshadow the intended benefits of these aggressive trade policies.
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Russia’s Defense Ministry stated Sunday that it is still awaiting official confirmation from Ukraine regarding a planned exchange of prisoners of war and the bodies of fallen soldiers, which was scheduled to begin Saturday.
The European Commission pushed back Saturday against German media reports alleging it signed secret contracts with environmental NGOs to promote EU climate policy, calling the claims “false” and reaffirming its transparency in funding practices.
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Start your day informed with AnewZ Morning Brief: here are the top news stories for June 8th, covering the latest developments you need to know.
Presidential candidate Miguel Uribe Turbay is in critical condition after being shot three times — including twice in the head — during a campaign event in Bogotá.
A 30-year-old woman was shot by police in Munich on Saturday evening after stabbing two people at Theresienwiese, a central park best known for hosting Oktoberfest.
Ukraine’s Security Service (SBU) has confirmed it carried out a third targeted attack against the Crimean Bridge, also known as the Kerch Bridge, early Tuesday morning, marking a new escalation in the ongoing conflict with Russia.
A strong 6.3 magnitude earthquake shook Japan’s Hokkaido prefecture early Monday, causing no reported injuries or damage, and no tsunami warning was issued, officials confirmed.
A year after unveiling its bold AI strategy, Apple finds itself in an unexpected place — not at the forefront, but falling behind. As rivals accelerate, Apple stands at a crossroads.
Donald Trump’s missile defence plan, called the Golden Dome, is set to become one of the most expensive military projects in U.S. history. Let’s take a look at how it has become a reason of rivalry, between Silicon Valley’s tech disruptors and America’s traditional defence giants.
Mexican President Claudia Sheinbaum has condemned U.S. immigration raids and National Guard deployment in Los Angeles, calling for reforms instead of enforcement.
Ukraine says a new prisoner exchange with Russia involving 1,000 troops from each side will begin next week.
A plane carrying 20 people has crashed in Tennessee, injuring six people but causing no deaths.
A year after unveiling its bold AI strategy, Apple finds itself in an unexpected place — not at the forefront, but falling behind. As rivals accelerate, Apple stands at a crossroads.
Donald Trump’s missile defence plan, called the Golden Dome, is set to become one of the most expensive military projects in U.S. history. Let’s take a look at how it has become a reason of rivalry, between Silicon Valley’s tech disruptors and America’s traditional defence giants.
Mexican President Claudia Sheinbaum has condemned U.S. immigration raids and National Guard deployment in Los Angeles, calling for reforms instead of enforcement.
Ukraine says a new prisoner exchange with Russia involving 1,000 troops from each side will begin next week.
A plane carrying 20 people has crashed in Tennessee, injuring six people but causing no deaths.
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