The Rise of the U.S Tariffs: Protecting Jobs or Hurting the Economy?
The US has set a 25% tariff increase on imports of steel and aluminum commodities worldwide starting on March 12, 2025. In addition, a 20% charge on all goods imported from China also began on March 4, 2025. This decision was taken by US President Donald Trump to ensure that local American products can compete with imported products to boost the economy and also help American citizens get more job opportunities in American industry and manufacturing.
In response to the increased tariffs set by the US, several countries such as Mexico and Canada have also increased their tariffs to 25% on all products and resources from the US. Meanwhile, China itself has imposed non-tariff export controls. Chinese foreign ministry spokesman Lin Jian said, “If the United States … continues to wage tariff wars, trade wars, or other types of wars, the Chinese side will fight them to the death.” China has also urged the US to immediately conduct a dialog regarding this issue.
On the one hand, the Trump administration firmly claims that these tariffs are necessary to protect American jobs and industry, especially in response to issues such as illegal immigration, drug trafficking, and also some commodity products that are considered dangerous by the US. The tariffs are also positioned to boost US manufacturing and reduce dependence on imported goods.
However, some experts claim that the US action will be a boomerang for the US itself. Even according to Federal Reserve Chairman Jerome Powell at a press conference on Wednesday, March 19, 2025, the increase in tariffs set by the US will cause consumer prices to rise; not only that, but this will also delay economic progress. Meanwhile, Bradley Saunders, a North American economist at Capital Economics, stated that the trade war that occurred during Trump’s first term was mostly “US-China,” but now it is the US with all parties. “Now, it’s a trade war between the US and everyone else,” he said. There is a lot of uncertainty, and it is also difficult to know how the US tariff increases will play out in the future.