US economy shows signs of strain due to Trump's new tariff move

Despite the uncertainty, the White House is confident that the onset of his tariffs will provide clarity about the path for the world's largest economy

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President Donald Trump began imposing higher import taxes on dozens of countries just as the economic fallout of his monthslong tariff threats has begun to cause visible damage to the US economy.

Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10% or higher. Products from the EU, Japan and South Korea are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20%. Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the United States.

"I think the growth is going to be unprecedented," Trump said Wednesday. He said the US was "taking in hundreds of billions of dollars in tariffs," but did not provide a specific figure for revenues because "we don't even know what the final number is" regarding the rates.

So far, however, there are signs of self-inflicted wounds to the US as companies and consumers brace for the impact of the new taxes. Hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline after the initial tariff rollout in April, said John Silvia, CEO of Dynamic Economic Strategy.