Part 4/7:
The Impact of Tariffs: A Global and Domestic Perspective
As Trump’s policies take effect, with higher import taxes on dozens of countries—some as high as 50%—the global response has been swift and multifaceted. Countries like India have imposed retaliatory tariffs on American goods, such as bourbon, signaling tensions in international trade relations.
Locally, in the United States, the effects are still unfolding. While tariffs are primarily a negotiation tactic aimed at encouraging better trade deals, they also risk raising prices for consumers in the short term. The federal government has historically subsidized sectors hurt by tariffs, such as agriculture, to offset economic pain.