President Donald Trump declared that billions of dollars are “flowing” into the U.S. just minutes before the president’s punishing new tariffs went into effect.
Trump reignited his trade war last week, unveiling new rates between 10 and 41 percent on goods from more than 90 countries.
After ordering a week-long delay on most levies just before his self-imposed deadline expired on August 1, the president’s tariffs took effect just after midnight on Thursday.
“It’s midnight!!!,” the president declared in block capitals at 11.58 p.m. on Wednesday. “Billions of dollars in tariffs are now flowing into the United States of America.”
Trump has repeatedly bragged about tariff revenues since he began ratcheting up import taxes on foreign goods on so-called “Liberation Day” in April.
Over the weekend, the president said that tariff revenues were bringing in “much more money” into the U.S. than the “country’s ever seen.”
Last month, the U.S. government collected almost $30 billion in tariff revenue, according to the Treasury Department – a 242 percent jump compared to last July.
Since imposing an initial round of 10 percent baseline tariffs across most goods in April, the government has collected around $100 billion in tariff revenue –more than triple the amount collected over the same four-month period last year.
While the White House believes the measures could reset the global trading order, some economists are more skeptical, warning that the levies have rattled financial markets and could leave U.S. consumers bearing the brunt of higher costs.
U.S. Customs and Border Protection began collecting the higher tariffs one minute past midnight on Thursday after months of suspense and frantic negotiations with major trading partners.
Above the 10 percent baseline rates, the new tariffs on U.S. imports begin at 15 percent, a rate faced by Bolivia, Iceland, and Nigeria among many other nations.
Some of the highest new rates, reaching 50 percent, apply to imports from Brazil. Trump framed the duty as a punitive tax in response to the South American nation’s decision to prosecute his political ally, former Brazilian President Jair Bolsonaro.
On Wednesday, Trump threatened to impose a 100 percent tariff on some semiconductors. He still plans to impose additional tariffs on foreign pharmaceutical products.
This is a developing story. More to follow.
