'A tariff curtain around America': Trump begins final tariff countdown

Trade Policy & Tariffs - The Trump administration imposed new tariffs, some as high as 41%, on countries that haven't reached a trade deal, with these tariffs taking effect a week later [2] - Canada's tariff rate was raised from 25% to 35% [3] - The US has trade deals in place with the UK, Europe, Vietnam, and South Korea, but the tariff increases are significant compared to pre-Trump levels, and the details remain unclear [4] - A federal appeals court is questioning the legality of Trump's unilateral imposition of tariffs using emergency powers [5] - The imposition of tariffs is leading to a "permanent tariff curtain" around the US, potentially ending the era of global free trade led by the US [7] - Future tariffs with most trading partners are expected to be around 15% or higher [10] - Exemptions worth approximately $1 trillion have been granted, with an unclear process for obtaining them [20] Economic Impact & Market Reaction - Tariffs are considered a tax on the American public, with companies initially absorbing the costs before passing them on to consumers, leading to inflation [23] - The market's positive performance is largely driven by a few massive tech companies, while manufacturing companies are bearing the brunt of the tariffs [31] - Specific sectors are negatively impacted, with apparel and accessories stocks down 19%, household products down 7%, and pharmaceuticals down 6% [33] Geopolitical & Legal Considerations - Tariffs are being used not only to correct economic imbalances but also to achieve foreign policy goals, such as influencing Canada's position on Palestine [16] - The legality of using national security as justification for tariffs, especially in cases unrelated to genuine security threats, is under scrutiny [29] - Businesses face uncertainty regarding tariff rates, effective dates, affected goods, and the legal validity of the tariffs [30]