1. Massive Tariff Overhauls

• In 2025, Trump launched sweeping tariffs under the Liberation Day policy, imposing a 10% baseline tariff on most imports starting April—with additional, country-specific "reciprocal" tariffs following soon after.
• These tariffs targeted a broad range of goods, including steel, aluminum, cars, consumer products, and even low-value items via elimination of China's de minimis exemption.
  
  

2. Legal Pushback and Limits

• The broad tariffs under the International Emergency Economic Powers Act (IEEPA) were ruled unconstitutional by the U.S. Court of International Trade in May 2025. They were overturned for exceeding executive authority, though enforcement remains paused during appeal.
  
  However, tariffs imposed under other authorities—like Section 232 (national security) and Section 301 (trade practice enforcement)—remain in effect.

3. Economic Consequences

• The Penn Wharton Budget Model estimates Trump’s tariffs could reduce long-term GDP by 6%, cut wages by 5%, and burden a middle-income household with $22,000 in lifetime losses. Tariff proceeds could raise up to $5.2 trillion over 10 years, but with significant economic trade-offs.
  
  
• Consumers are already feeling the pinch. Estimates suggest households could see annual price increases up to $2,400, with rising inflation, reduced consumer spending, and slowed economic growth as key worries.
  
  

4. Diplomacy Derailed

• Tariffs have become a central tool of Trump’s foreign policy, superseding traditional diplomacy. Countries such as India face up to 50% duties, prompting serious diplomatic strain and re-evaluation of strategic partnerships.
  
  
• Key U.S. allies—including Japan, South Korea, Canada, and the EU—are still awaiting promised tariff relief, further eroding trust in American trade commitments.
  
  

5. Mixed Signals on Manufacturing Surge

• Trump touts tariffs as catalysts for a U.S. manufacturing renaissance. However, economists remain doubtful, citing rising production costs, weak investment, and a shift toward outdated technologies as counterproductive side-effects.
  
  

Summary: A Pricey Gamble with Global Fallout

Why it matters
Trump's broad-based tariffs are more than economic tools—they've become instruments of geopolitical leverage. While they may yield short-term revenue or negotiation flexibility, the long-term costs—legal battles, strained alliances, inflation, and hit to growth—paint a picture of precarious leadership grounded in unpredictability.