Business Leaders Warn Trump Tariffs Will Drive Up U.S. Prices
President Trump’s sweeping tariffs on key U.S. trade partners, including a 34% rate on Chinese goods, could push average U.S. tariffs to historical highs, raising consumer prices and sparking inflation, according to business leaders and economists.
Published on April 3, 2025
On April 2, 2025, President Donald Trump announced a wide-ranging set of tariffs targeting major U.S. trade partners, including a 34% tariff on Chinese imports and significant new duties on goods from the EU, South Korea, Japan, India, and others. Trump touted the move as a step toward achieving 'economic independence' and correcting long-standing trade imbalances, even as critics warned that the tariffs could raise the average U.S. tariff rate to about 25% – a historical high that may fuel inflation and disrupt various industries.
Key sectors including seafood, wine, toys, electric vehicles, and restaurants expressed concerns about rising input costs, while politicians remained divided on the issue. Some Republicans supported the protectionist measures, whereas others, like Mike Pence, decried the move as a steep tax hike. Diplomatic efforts, notably by South Korea and other affected nations, aimed to resolve tensions as market reactions turned cautious, with reports of declines in stocks and broader economic unease reported by Reuters, the Associated Press, and the Financial Times on April 2–3, 2025.