US President Donald Trump has implemented a dramatic shift in trade policy, introducing steep new tariffs on over $2 trillion worth of imports, including goods from China and the European Union. The move pushes US tariff rates to their highest in over a century, with prices on consumer goods like clothing expected to rise by up to 33%. The administration argues this approach is vital for rebuilding America’s manufacturing base and ensuring national security.

However, the tariffs have triggered global market instability, halted shipments, and created widespread uncertainty among US businesses. Talks with Japan, Vietnam, and South Korea have been initiated, but exemptions seem unlikely, and negotiations with China remain stalled. China has labeled the US approach as “bullying” and vowed to respond firmly.

Stock markets in the US and globally have declined sharply, and experts warn of long-term economic damage, including the potential loss of 600,000 US jobs and a $3,800 drop in household purchasing power. Business leaders and economists alike are concerned about the unpredictability of the situation, with many pausing operations until clearer guidance emerges.