Massive Tariffs Take Effect, Sending Ripples Through the Global Economy

A sweeping wave of new tariffs imposed by former President Donald Trump has officially taken effect, affecting dozens of countries and pushing trade tensions to a new high. U.S. stocks opened stronger despite the news, but economists are warning of serious long-term impacts.

Under the new policy, tariffs on imported goods have soared—some as high as 50%. The changes mark a historic shift in global trade, raising the average U.S. tariff rate above 17%—the highest seen since the Great Depression.

Few countries were spared. India was hit with a 25% tariff last Thursday, and an additional 25% in so-called “secondary sanctions” will follow soon, targeting nations that continue to do business with Russia, especially in energy.

Trump signaled more penalties ahead, particularly for countries buying Russian oil and gas. “We’re sending a clear message,” he said, as the White House continues efforts to economically isolate Russia.

Despite the dramatic changes, Treasury Secretary Scott Bessent appeared optimistic, saying that key trade agreements are “largely done” and that the administration’s focus will now shift to easing the cost of living in the U.S.

While the markets may have shrugged off the initial impact, experts caution that consumers could feel the pinch in the coming months as prices rise on everyday imported goods.