(DDM) – President Donald Trump’s sweeping “reciprocal” tariff regime officially took effect just after midnight, marking a historic shift in the global trading system and signaling the president’s determination to push his aggressive trade agenda even further.
The new measures, which have been years in the making, cement Trump’s vision of reorienting more than seven decades of global commerce.
DDM gathered that White House insiders say Trump has grown more emboldened in recent months, convinced that his unprecedented reliance on tariffs has yielded results without causing significant harm to the US economy.
This confidence stands in stark contrast to warnings from corporate leaders, economists, and foreign governments who argue that the approach risks slowing global growth and destabilizing trade relations.
According to a senior administration official, Trump now views tariffs as an all-purpose policy tool.
“Tariffs are his Swiss Army Knife – there isn’t a single thing that crosses his desk that can’t be solved by their utility,” the official told CNN.
The aide went further, saying the last few months have convinced Trump that the tariffs are more like a “Swiss Army chainsaw,” capable of cutting through virtually any economic or geopolitical challenge.
The new trade architecture includes tariff-heavy bilateral agreements with nations representing roughly 60% of global GDP.
Active tariffs now cover steel, aluminum, copper, automobiles, and auto parts.
Sector-specific levies on semiconductors, pharmaceuticals, lumber, critical minerals, aircraft, polysilicon, and trucks are in the pipeline, with rollout dates and rates determined largely at Trump’s discretion.
For semiconductors, Trump has already set duties at approximately 100%, while threatening rates as high as 250% for pharmaceuticals.
Foreign leaders have voiced concern that the policy could spark retaliatory measures, risking an escalation into broader trade disputes.
Economists have also flagged warning signs in manufacturing output, corporate earnings calls, and international supply chain stability.
However, Trump has dismissed such concerns, pointing to what he describes as resilience in the US economy and strength in key sectors.
The White House insists the tariffs are designed to create “fair, reciprocal trade” by pressuring foreign governments to lower their own barriers and reduce trade deficits with the United States.
Critics argue that the measures could instead increase costs for American businesses and consumers, particularly if targeted industries rely heavily on imported components.
While the immediate impact of the reciprocal tariffs will take time to fully measure, analysts say Trump’s rhetoric and policy moves suggest that this is only the beginning of a more confrontational era in global trade.
With further tariff hikes expected in the coming weeks, international markets, trading partners, and domestic industries are bracing for what could be a prolonged period of economic uncertainty.
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