By John Q. Hosedrinker 
Since returning to the White House, President Trump’s implementation of double-digit tariffs on imports has significantly altered U.S. trade policy. These tariffs, aimed at reducing the trade deficit and boosting domestic manufacturing, have increased the effective tariff rate to its highest level since 1935, reaching nearly 17% by November. While the tariffs have generated substantial revenue for the U.S. Treasury and contributed to a narrowing trade deficit, the disruption to global supply chains has impacted trade with major partners like China, and led to significant market volatility.
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Trump overturned decades of US trade policy in 2025. See the impact of his tariffs, in four charts. This is a big deal. For years, the United States had been carefully navigating the global trade landscape, building alliances and fostering economic cooperation. Then came 2025, and a radical shift. The imposition of tariffs – taxes on imported goods – became a weapon, reshaping international relationships and impacting the daily lives of people worldwide.
The immediate reaction was a palpable shift, especially among our allies, with some countries like Switzerland and Canada, experiencing a significant impact. It quickly became clear that these changes would have broad consequences. Take, for instance, the reaction to US food items in Switzerland. Consumers there expressed a strong preference for local or European alternatives, with the US reputation for food quality and production practices taking a hit. This wasn’t just about price; it was about trust and values.
One of the most noticeable effects of the trade changes was the rising cost of goods. The tariffs, in essence, acted as an additional tax on many products. This meant that consumers, particularly those with lower incomes, felt the pinch as the prices of everyday items like batteries and groceries increased. Meanwhile, the idea of “America First” was met with a growing sense of skepticism abroad. The US started alienating countries, particularly those with whom the US had a long standing and positive trade relations. Selling goods isn’t about arm-twisting; it is about negotiation, and with such drastic actions there was inevitably a loss of goodwill.
It is also worth mentioning that those with the most to lose from these policies are those who supported them. The trade imbalance had a serious effect on business in the US as the value of the dollar dropped due to fewer foreign goods being purchased by the US.
Finally, and perhaps most importantly, trust was eroded. As one observer put it, the damage inflicted was so significant that it would persist for years, and while the economic impact of the tariffs could be measured in numbers, the damage to relationships would be longer lasting. This is a generational change in spending habits as countries begin to explore new economic partnerships.