Americans are about to feel the pain as Trump tariffs begin today

There is a way to implement economic policy responsibly: through deliberation, consultation and clear communication. Then there is Donald Trump’s way.

On Friday, in a move that highlighted his signature style of reckless governance, Trump announced sweeping tariffs on three of the United States’ largest trading partners — Canada, Mexico and China — set to take effect today. The announcement came with no details on how the tariffs would work, other than a vague promise that specifics would be available for public inspection “at some point” today.

The stunning lack of preparation and transparency sent world leaders, economists and financial markets into a tailspin. With no time to analyze, negotiate or prepare for the consequences, businesses that rely on international trade were left scrambling.

The fallout was immediate: The Dow Jones Industrial Average plunged more than 300 points within hours of the announcement, and the S&P 500 and Nasdaq followed suit. Mortgage rates, which had been showing signs of softening, hardened once again as uncertainty gripped the economy. And automakers and other manufacturers of goods that source significant materials from foreign partners have already begun to discuss increases in cost that will either need to be passed on to consumers or absorbed by businesses, leading to layoffs and closures. In fact, the mere threat of tariffs had already prompted some companies to reduce their workforce in anticipation of rising costs.

Global leaders, too, were blindsided. International economic policy is not a household board game in which new rules can be declared on a whim. Trade agreements, supply chains and diplomatic relations are deeply interconnected and require careful planning sometimes years or even decades in advance. Yet, with the stroke of a pen and an incoherent press statement, Trump threw international commerce into chaos.

China — already locked in an uneasy trade relationship with the U.S. — is now facing additional 10% tariffs, which will inevitably provoke retaliation. Beijing’s response will likely escalate tensions, further disrupting an already fragile global economy.

Preparation requires information, and Trump’s off-the-cuff style has ensured that no one — not American businesses, not foreign governments, not even his own administration — knows exactly what to prepare for. Without details on exemptions, affected industries or enforcement mechanisms, companies are left making decisions while blindfolded, a disastrous state of affairs for an economy still recovering from pandemic-era shocks.

Perhaps the most galling aspect of Trump’s move is his justification: that these tariffs are meant to punish China and Mexico for their alleged role in the fentanyl crisis. This is not a sincere reason, it’s a deception from a leader eager to throw his weight around no matter who is harmed. The opioid epidemic is a serious issue that demands solutions, but tariffs are a wildly ineffective tool for addressing it. Trump’s trade war will do little to curb the crisis while inflicting economic pain on American businesses and consumers alike while also damaging two of our closest allies. The only beneficiaries of this disorder are America’s international economic competitors, who are watching with satisfaction as the U.S. destabilizes itself from within.

For average Americans, Trump’s crazed tariff policies are already costing us dearly.

Interest rates for mortgages and other large purchases are tied, typically, to the 10-year U.S. Treasury bond yield and those rates have been held artificially high because of the mere threat of tariffs, much less the reality of them. Neither Trump nor the Federal Reserve can influence the bond yield; traders do that, and traders are worried about these tariffs.

If you’re getting ready for a major purchase such as a home or car, you’re looking at interest rates held higher because of Trump’s tariff bullying. If the tariffs stay in place for any length of time the manufacturing costs will go up as the costs of everything from Canadian lumber to Chinese steel spike.

Similarly, if you have an adjustable-rate mortgage about to be reset, you’re going to be stuck paying an artificially high rate because of Trump’s tariff threats. Trump completely owns those higher rates you’re about to pay.

Groceries will cost more as soon as next week: 70% of Mexican exports to the U.S. are fruits, vegetables, grains and liquors, all of which will go higher.

Trump lives in a fantasy world of MAGA preening in front of a chorus of yes-people. In our real world, we’re all paying a lot more, right now and more tomorrow, because of Trump’s foolishness.

The U.S. economy thrives on predictability and stability — two qualities that Trump’s impulsive policymaking actively undermines. By refusing to provide essential details, he has made it impossible for businesses to plan, for investors to act with confidence and for world leaders to engage in meaningful diplomatic discussions.

This is not just bad economic policy; it’s a national security risk. The world’s economic balance is not an experiment for one man’s knee-jerk decision-making. When the United States throws trade policy into disarray, it weakens its own standing on the global stage, creating opportunities for rival nations to exploit vulnerabilities. If the aim is to counter China’s economic influence, what sense does it make to create conditions that push other nations toward deeper cooperation with Beijing?

Even if Trump insists on pursuing a tariff-heavy trade strategy, he must at the very least do so responsibly. That means providing detailed plans well in advance, allowing for exemptions and negotiations and ensuring that businesses — both American and foreign — have time to adjust.

Weaponizing tariffs in a haphazard manner, with no clear structure and no consideration for their consequences, is a reckless and dangerous approach to governance. If this is the way Trump plans to run economic policy, both America’s economy and its global leadership will suffer. The world is watching.