Trump & Tariffs (IEEPA)

As of April 5, 2025, Trump has set new tariff laws which will affect all foreign imports. Tariffs are taxes placed on imported goods, and the amount that is charged can be determined by the value of the goods. The tax placed on the item is either paid by the government of the country/company that is shipping it, or the cost will transfer onto the item and cause the price to rise  for consumers. If a higher tax is placed on an item, it can prompt a business to send in fewer goods to make up for the higher costs. Countries use tariffs in order to protect domestic industries, evoking consumers to buy from local industries and avoid outside sources. It also prompts consumers to buy from local businesses and secure revenue. Without a tax, local businesses would have a large competitive disadvantage when faced with other markets.  The most direct effects for consumers are increased prices and reduced trading. 

On a similar note, the IEEPA (International Emergency Economic Powers Act) of 1977 allows a U.S. President to regulate economic activities. Recently, the Trump administration has used the IEEPA to integrate broad tariffs by claiming that there are unfair trade practices. The practices have been found to contain issues like intellectual property theft, and trade imbalances. As a solution, tariffs act as a retaliation to unfair import deals. If a country tries to subside its items for cheaper, a tariff can offset the change and still have the U.S. gain profit. 

Trump’s tariffs have acted much like taxes for consumers, raising prices on everyday goods and services and slowing economic growth as businesses pass those added costs along. These increases in prices affect supply chains at every level, making it harder for both major retailers and small businesses that rely on low-cost imports to keep prices stable. Negotiations about trade and tariff laws with key trade partners such as China, Canada, and Mexico are still ongoing. Because these countries make up America’s top three trading partners, they are among the most affected by these new policies. Trump has also removed the exemption for imports valued at around $800, which used to allow low-cost goods to enter the country duty free. Without that protection, even inexpensive items are now subject to new fees, creating extra financial pressure on companies built around fast, low-value international shipping. Retailers like Shein and Temu have been hit the hardest, now facing added charges of roughly $80 to $200 per package (depending on origin and shipment size), which is a shift that forces them to rethink shipping strategies and ultimately raises costs for consumers.

(Trump Tariffs: Tracking the Economic Impact of the Trump Trade War)

Statistically, there is a drastic difference in revenue. In 2024, the tax collected was around $79 per month. On the other hand, prices continue to rise as of September. This increase corresponds with the expanded tariff measures implemented under the IEEPA. An estimated $1.3 trillion is said to be collected in federal revenue over the next decade due to current rates and import patterns. For households, statistics indicate that the IEEPA tariffs are expected to result in roughly $1,000 in additional annual costs due to the higher prices associated with imported goods.