By Scout Nelson
President Donald Trump’s approach to global trade has triggered wide debate and global market concern. Calling himself “Tariff Man,” Trump introduced sweeping tariffs that are historically high compared to other industrialized nations. These broad tariffs have been applied to many countries, with a particular focus on Chinese goods.
Although some nations have received temporary reprieves, Trump has maintained high tariffs on China. Experts warn this approach may lead to a full-scale trade war as other nations retaliate with their own tariffs. While there’s speculation that tariff rates may be reduced to ease tensions, even halving the current rates would leave them at 50 to 65 percent—still far above historical norms.
Amidst this uncertainty, Minnesota Attorney General Keith Ellison, along with other attorneys general, filed a lawsuit challenging the legality of Trump’s tariff orders. They argue that imposing such taxes through executive orders violates the Constitution, which grants tariff-setting authority to Congress.
Economists and financial institutions have grown increasingly worried. J.P. Morgan has raised its projected risk of a 2025 recession from 40 to 60 percent, while Goldman Sachs sees a 45 percent chance within the next year. The International Monetary Fund echoed these concerns in its World Economic Outlook, warning that high and unpredictable tariffs could harm economic growth.
“A series of new tariff measures by the United States and countermeasures by its trading partners... bring effective tariff rates to levels not seen in a century,” the IMF noted. “The unpredictability... makes it more difficult than usual to make assumptions that would constitute a basis for an internally consistent and timely set of projections.”
As legal, political, and economic debates unfold, uncertainty continues to weigh on businesses, consumers, and global trade.
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Categories: Minnesota, Government & Policy