As the U.S. continues to implement and adjust tariffs on countries like China, Japan and India, the global economy and trade landscape is rapidly changing.
These tariff adjustments, aimed at addressing trade imbalances, are creating ripples that could have lasting effects on local businesses, industries and even the daily lives of Americans.
President Donald J. Trump’s recent, initial announcement of a sweeping 10 percent tariff on all imports to the United States, referred to as “Liberation Day,” signals a new chapter in America’s trade policy.
Alongside this baseline tariff, Trump raised the stakes for approximately 60 countries and trading blocs that run substantial trade deficits with the U.S. These nations, including some of America’s largest trading partners, will face even higher tariffs on their goods.
Pennsylvania Gov. Josh Shapiro (D) voiced concerns about the economic impact on the Commonwealth. “I’m worried about the good people of Pennsylvania, who are getting absolutely screwed by this administration. This was supposedly an election about how we are going to bring down costs, and today, ‘Liberation Day’ or whatever Trump’s calling it, we’re now going to see prices go further up.”
In an interview with The Penn, Alden Miller (sophomore, finance) noted that many IUP students and faculty are tracking not only the market shifts, but the broader political and economic consequences of the current administration’s trade strategy.
“The implementation of tariffs has undeniably created notable fluctuations in the market… All in all, I think this is an interesting decision for the global trade system,” he said. “This is one of the biggest political decisions that will happen in our lifetimes, and I hope it turns out for the best.”
Many economists fear these reciprocal tariffs are poised to cause drastic economic shifts. “This is, without a doubt, the biggest trade policy shock, I think, in history,” said editor-in-chief of The Economist, Zanny Minton Beddoes.
However, not everyone is opposed to Trump’s economic strategy and foreign policy actions. “President Trump’s tariffs aren’t economic warfare, they’re the much needed reckoning,” said former U.S. Rep. Mike Garcia (R-Calif.) in a post via X on Tuesday.
“Some find these tariffs uncomfortable, but we must remember that the U.S. has one of the world’s most open economies — access to our market is a privilege, not a guarantee. This is the path to reciprocal trade,” he said.
The impact of these moves is already being felt. Trump’s reciprocal tariffs, which took effect on Saturday, initially included a staggering 104 percent tariff on Chinese imports, an increase from 54 percent.
In response, Beijing quickly retaliated, announcing an increase in tariffs on U.S. imports to 84 percent, from 34 percent.
On Wednesday, the global market was once again shocked as Trump further escalated his stance against China, announcing an additional increase in tariffs, to 125 percent, on Chinese goods, from 104 percent.
“Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125 percent, effective immediately,” Trump said in a post via Truth Social on Wednesday. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”
Notably, these new tariffs do not include a separate 20 percent tariff already imposed on China for its alleged role in the fentanyl trade. Combined, China now faces a total tariff rate of 145 percent on certain exports to the U.S.
In a shift towards diplomacy with other trading partners, Trump also addressed concerns raised by more than 75 countries.
These nations, including India, Japan, the United Kingdom and Vietnam, have initiated negotiations to address issues related to trade barriers, tariffs, currency manipulation and non-monetary trade restrictions.
Trump said, “And that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10 percent, also effective immediately.”
Following Trump’s announcement around 1 p.m. Wednesday, U.S. stocks skyrocketed within minutes. The Nasdaq Composite surged 12 percent, the S&P 500 jumped 9.5 percent and The Dow Jones Industrial Average rose 7.9 percent.
While the pause offers a temporary reprieve for more than 75 nations, signaling a potential shift toward resolution in some ongoing trade disputes, student investors are closely analyzing its deeper implications and rethinking their financial strategies.
“The recent 90-day suspension of tariffs offered a temporary sense of relief to investors, yet it is important to recognize that this reprieve is short-lived,” Miller said. “In light of these uncertainties, many investors, including myself, are considering the merits of diversifying our portfolios internationally or exploring alternatives such as holding assets in different currencies to safeguard against potential fluctuations in the value of the U.S. dollar.”
Despite the temporary market surge, skepticism remains. U.S. Sen. Adam Schiff (D-Calif.) announced an investigation into potential insider trading related to the recent tariff decisions.
“Adam Schiff just announced he is investigating whether insider trading was involved in Trump’s tariff announcements,” said a Democratic Winds Media X post.
Miller suggested that the timing of the pause may not be coincidental.
“From my perspective, this could be considered blatant market manipulation. This has caused a dip and then a small boom within the market, just enough to allow others to buy in at the right time,” he said.
As tensions continue to rise, the world watches closely to see how these aggressive tariff policies will unfold and what long-term impacts they will have on international trade, global supply chains and everyday consumers.
For the latest updates, IUP faculty, staff and students have free access to the Wall Street Journal online edition. For official access, visit the WSJ Partnership Website.
