Tariff Barriers Rise: US Imposes Highest Import Duties Since the 1930s

After months of delays and political wrangling, a historic tariff package went into effect in the United States early Thursday morning. President Donald Trump’s sweeping tariff strategy now places a baseline duty of 10% on nearly all imported goods, pushing the average tariff rate above 17%—the highest level since 1935 during the Great Depression.

The impact will be felt across the American economy. Imported household appliances from the EU, cars from Japan, televisions from South Korea, and toys and furniture from China are all subject to the new duties. Only selected goods—such as certain oil and gas products, some smartphones, and products covered by existing free trade agreements with Mexico and Canada—are exempted.

“It’s midnight! Billions of dollars in tariffs are now flowing into the USA!” wrote Trump triumphantly on Truth Social. But behind the celebrations, economic unease is mounting.

According to the independent Yale Budget Lab, the tariff package could cost an average American household up to $2,400 in increased expenses per year. Clothing and footwear are set for some of the highest price jumps, with prices rising 38% and 40% respectively due to increased import costs.

While the White House highlights boosted investments and increased domestic production, economists warn of stagflation and growing uncertainty. “Economic activity and job creation are faltering under the pressure of higher tariffs and rising inflation,” concluded an analysis from BMO.

Although stock markets have risen, driven mainly by technology and AI investments, other key economic indicators show signs of strain. In particular, the manufacturing sector has seen no job growth, and companies in the service sector report delayed investments and rising operating costs.

At the same time, Trump has signaled that even more goods may come under higher tariffs. In an interview with CNBC, he announced pending tariffs on medical products and microchips—a significant portion of which are imports. He has already doubled tariffs on goods from India and threatened the EU with new duties.

Several small businesses have filed lawsuits challenging the administration’s use of emergency powers, and although a court has partially ruled in their favor, the tariffs have been maintained under a temporary ruling.

A Senate bill aimed at restricting the president’s tariff authority has so far stalled in the House of Representatives.

Whether Trump’s strategy will ultimately succeed or mark the beginning of an economic downturn remains to be seen. But one thing is clear: the era of tariff relief is over—and the bill has already landed in the laps of American consumers.

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