- Broad-based tariffs take effect immediately on all imports
- 68% of economists predict Q3 economic contraction
- Canada/Mexico relations reach breaking point with countermeasures
- Midwest auto plants face 19% production cost increase
President Trump's long-promised Liberation Daytrade policy arrived with seismic force Wednesday as the administration imposed immediate tariffs ranging from 15-25% on imported goods. The Rose Garden announcement fulfills Trump's campaign pledge to reset global trade relationships, but sends shockwaves through financial markets already down 4.2% this week.
White House economists project $320 billion in annual government revenue from the levies, claiming they'll revive domestic manufacturing. However, Federal Reserve analysts counter that consumer prices could spike 7-9% by summer - particularly for electronics and vehicles. This isn't economic policy, it's Russian roulette with retirement accounts,said former Treasury Secretary Larry Summers in a CNBC interview.
The policy's first casualties emerged within hours as Mexico imposed 30% tariffs on U.S. corn exports and Canada halted all energy exports through the Michigan pipeline nexus. Midwestern farmers face catastrophic impacts, with Iowa Soybean Association president Robb Ewoldt stating: We're collateral damage in a war our allies didn't start.
Automakers present a critical test case. Ford's Dearborn plant relies on 38% Canadian-sourced components now subject to tariffs. Production cost models suggest either $4,700 price hikes per F-150 truck or elimination of 2,400 Michigan jobs. There's no scenario where American workers win here,UAW President Shawn Fain told ABC News.
Political fallout compounds economic risks as new AP polling shows 61% disapproval of the tariffs, including 29% of Republicans. Senate Democrats plan emergency legislation to exempt medical imports, while 43 House Republicans quietly drafted a letter urging measured implementation.Despite the backlash, Trump remains defiant: The bleeding stops today. America will profit or perish - there's no middle ground.