Tariffs Go Into Effect Amid Economic Pain

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

- ASSOCIATED PRESS

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.

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.

Now that companies understand the direction the U.S. is headed, the Republican administration believes it can ramp up new investments and jump-start hiring in ways that can rebalance America as a manufacturing power.

So far, however, there are signs of self-inflicted wounds to the U.S. as companies and consumers brace for the impact of the new taxes.

Risk of economic erosion

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.