The Dow Jones (DJIA) is in positive territory as President Trump’s sweeping reciprocal tariffs have officially taken effect. U.S. trading partners across the world are now subject to levies between 10% and 50%. Consequently, the U.S. average tariff rate will jump to 18.3%, the highest level since 1934, according to Yale’s Budget Lab.
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“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” Trump said in a Truth Social post.
U.S. Households Set to Take $2,400 Hit from Tariffs
Yale’s Budget Lab adds that the tariffs will raise U.S. prices by 1.8% in the short run, resulting in an average household income loss of $2,400.
Several key U.S. trading partners, like the European Union, Japan, and South Korea, will be subject to a 15% tariff. Other countries, like India and Switzerland, face steeper tariff rates of 50% and 39%, respectively. India’s elevated tariff rate, up from 25%, will take effect in 20 days.
The Dow Jones is up by 0.43% at the time of writing.
