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I do my best to objectively ignore the branding of announcements from Washington. The focus should always be on substance, intent, and actual impact.
With yesterday's announcement by the President of a formal, broad-reaching plan of global, reciprocal tariffs, we can now attempt to evaluate and adapt to the challenges that await.
The White House's messaging attempts to convey how the 10% global rate is more about equalization with much of the world, and how the US is still keeping tariff rates for imports lower in many cases than the rates applied abroad.
As for the rates themselves, here's a pretty good summary of how they were established:
Additional explanation is available from Market Watch:
https://www.marketwatch.com/story/trumps-very-very-very-simple-way-of-calculating-reciprocal-tariffs-bdec48fd?mod=home_lead
We will need to learn more what the actual effective rates and impacts are, and I imagine those will be known soon.
Here's a good initial overview from WSJ:
https://www.wsj.com/economy/trade/what-to-know-about-trumps-latest-tariff-policy-moves-8d9f8b37?st=V6jSKK&reflink=mobilewebshare_permalink
And more specific explanations with respect to the impact for imports from China, Canada, and Mexico:
https://www.wsj.com/livecoverage/trump-tariffs-trade-war-stock-market-04-03-2025/card/how-trump-s-new-tariffs-will-affect-china-canada-and-other-countries-Bsx1deSMazhJTe09PRdP
Impact on Federal revenues and cost of living remain to be seen. Overnight, the broader-than-anticipated impact became more clear, as noted in the summary below.
It is also important to know that a tariff rate does not necessarily mean an equivalent increase in prices paid by end use consumers. I would imagine many retail prices will go up less than the tariff rate in effect (depending on country of origin). It's also possible prices could go up even higher, especially if the tariffs lead to reductions in available supply.
There's also potential incentives, for some, to take advantage of the situation:
Much remains to be seen, especially if the President's decision leads to more escalation between us and other nations. As for my thoughts on “Why?”, I cover those in the video.
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