On August 7, CNN abruptly cut into its regular News Central broadcast to deliver urgent breaking news: President Donald Trump’s controversial new tariffs, the highest the U.S. has seen in nearly a century, had just gone into effect. The move, economists warn, could hit American wallets hard and spark a fresh wave of global trade tensions.
CNN anchor Fredricka Whitfield, filling in during the broadcast, explained the historic scale of the new duties: “President Trump’s tariff threats are now an economic reality… and they are the highest in nearly 100 years since the Great Depression.” The sweeping import taxes, ranging from 10% to a staggering 50%, target goods from over 90 countries, impacting everything from European appliances to Chinese electronics.
Some nations were hit particularly hard. Brazil faces a 50% rate, Switzerland 39%, Canada 35%, and India 25%—with Trump announcing an additional 25% on Indian goods in just three weeks as retaliation for the country’s purchase of Russian oil. According to the Yale Budget Lab, the average consumer will now face the highest effective tariff rates since 1934—and after spending patterns shift, the impact could surpass rates not seen since 1935.
For ordinary Americans, the consequences could be painful. Prices on everyday products—including alcohol, computers, Crocs, and children’s toys—are expected to climb. One economic estimate warns the average U.S. household could see an extra $2,400 in annual costs.
Trump, however, is celebrating the policy as a major win. Posting in all caps on Truth Social the night before the tariffs took effect, he wrote: “RECIPROCAL TARIFFS TAKE EFFECT AT MIDNIGHT TONIGHT! BILLIONS OF DOLLARS… WILL START FLOWING INTO THE USA.” At midnight, he posted again: “It’s midnight! Billions of dollars in tariffs are now flowing into the United States of America!”
Critics say the celebration ignores potential downsides—higher prices for consumers, retaliation from trade partners, and potential strain on global supply chains. Still, Trump insists the measures will restore fairness to global trade and put America first.
The announcement came as Trump faced unrelated distractions, including a bizarre viral photo showing him without his signature tan and iconic hairstyle, and renewed speculation about his health after a family member reportedly described “chilling” signs of cognitive decline.
Whether this historic tariff hike delivers the economic boost Trump predicts—or leaves Americans footing a costly bill—remains to be seen. But one thing is certain: the U.S. hasn’t seen tariffs this high since the darkest days of the Great Depression.
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