The Take How Trump’s tariffs are changing the rules of global trade
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Apr 7, 2025 Vina Nadjibulla, Vice President of Research and Strategy at the Asia Pacific Foundation of Canada, shares her expertise on the global trade disruptions caused by Trump’s tariffs. She discusses the unexpected impacts on American consumers, particularly lower-income groups who face rising costs. The conversation delves into the retaliatory measures from China and how Southeast Asian nations are adapting their economic strategies. Vina emphasizes finding opportunities in crisis, highlighting resilience and collective action as vital for navigating these turbulent times.
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Sweeping Tariffs
- President Trump announced sweeping tariffs, a minimum of 10% on all goods, and reciprocal tariffs up to 49%.
- This constitutes the largest trade war in history, impacting how goods are made, bought, employment, and inflation.
Tariff Formula
- Trump's tariffs are based on a unique formula considering solely the trade deficit, deviating from standard tariff calculations.
- This formula divides the bilateral trade deficit by US imports and then by two, a random and unprecedented approach.
Impact on Consumers
- The tariffs will increase prices on most goods Americans buy, like apparel, electronics, and groceries.
- The price increases will take time to trickle down but will be noticeable within a few months, especially by summer.