Rate Expectations

After months of extensions and negotiations, President Trump’s “reciprocal” tariffs are officially, officially in effect. 

As of yesterday, most imported goods now face a minimum 10% baseline tariff, with the average tariffed country seeing a 17% rate. Some countries are really feeling the squeeze: Syria (41%), Laos and Myanmar (40%), and Switzerland (39%)–which is still hoping to negotiate better terms with Uncle Sam. Others reached agreements, including the E.U., Japan, and South Korea (all 15%), and the U.K. (10%). Still others, like China and Mexico, remain in levy limbo, with their rates paused.

Trump didn’t wait to celebrate, posting at midnight yesterday: “Billions of dollars in tariffs are now flowing into… America!”

Industries seem less excited; the new levies have begun disrupting supply chains and are expected to raise prices on a wide range of overseas goods, from TVs to tangerines. 

ETERNAL PERSPECTIVE
Regardless of how tariffs affect the economy, both today and in the long term, their impact doesn’t change the end of the story. Wealth comes and goes—only King Jesus will receive tribute from the whole world. 

“May the kings of Tarshish and the coasts and islands bring tribute, the kings of Sheba and Seba offer gifts. Let all kings bow in homage to him, all nations serve him. For he will rescue the poor who cry out and the afflicted who have no helper.” 
Psalm 72:10-12 (CSB) (read full passage)