President Donald Trump’s U.S. tariffs went into effect today just as the country’s economy has begun to show signs of damage, and a new tariff was placed on computer chips, the Associated Press reports.
Goods from over 60 countries became subject to import taxes of 10% or higher just after midnight. Products from the European Union, Japan and South Korea are being taxed at 15%, and imports from Taiwan, Vietnam and Bangladesh at 20%.
As companies and consumers brace for the impact of the new tariffs, there are already signs that Trump’s ongoing trade wars have harmed the American economy, including stalled hiring, a slight upward trend in inflationary pressures and an increased risk of economic erosion.
Meanwhile, the president on Wednesday announced plans to impose a 100% tariff on computer chips, which could raise the prices of electronics, autos, household appliances and other essential products. Trump said he would spare companies from the tax if they make computer chips in the U.S.
The announcement comes over three months after Trump temporarily exempted most electronics from his administration’s highest tariffs.
Trump also signed an executive order Wednesday to place another 25% tariff on India for its purchases of Russian oil, which brings the combined tariffs imposed on it by the U.S. to 50%. The tax would go into effect 21 days after the order was signed, leaving time for India and Russia to negotiate with the Trump administration.
