How do Trump’s reciprocal tariffs affect you?

The carased «day of liberation» has arrived and, despite the expected negative news, he has left many speechless. The president of the United States, Donald Trump, announced on April 2 a wide battery of tariffs that will affect dozens of countries and threaten a strong impact on global trade.

Governments, political leaders and business organizations expressed concern about the repercussions of advertisements, both in bilateral relations with the United States and in the world economy.

Most economists warn that the consequences of «day of liberation» could be serious, bringing from inflation to the fall of trade and a global recession. A situation that probably extends to the entire globe, although the list of countries directly affected 50 (including the European Union as a block).

Latin America is no exception. Trump’s new commercial offensive it affects almost the entire region. According to the list, the majority will be applied a 10% tariff in their exports to the United States.

Among those affected are Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Panama, Paraguay, Peru, Dominican Republic and Uruguay. To Nicaragua and Venezuela a higher percentage will be applied18% and 15%, respectively.

Mexico was out of this new round, together with Canada, for being part of the T-MEC treaty with the US. UU. It establishes preferential trade conditions, although Trump has already hinted that he has intentions to finish it.

Consequently, for now, the products of both countries that comply with the agreement will remain exempt from tariffs. Those who do not meet will continue subject to rates of 25% for goods not contemplated in the treaty and 10% for products such as energy and potash.

Another Latin American country not mentioned is Cuba, on which the US maintains A commercial embargo.

Given the magnitude of the ad, the voices of rejection have not been long in coming. For experts, Trump’s new tariffs are a radical turn in American commercial policy and A HEARED BIRTH TO THE COMMERCE SYSTEM built after World War II.

From Tax Foundationa group of international research experts, observe that the rate above all imports will increase from 2.5% in 2024, al 18,8 % (The highest average rate since 1933), according to the tariffs announced by 2025.

Trump’s 2.0 tariffs affect more than USD 1 billion imports, more than double its first mandate. That figure could increase to USD 1.4 billion in the next few days if exemptions for Canada and Mexico are allowed to expire.

Tax Foundation

Given this scenario, it is worth asking about the way in which this new dynamic will personally affect citizens around the world; and especially those who live in affected countries.

First effect: price and inflation increases

The first of the planned effects is a Generalized price increase For US consumers. In items such as vehicles, clothing, appliances, bicycles and wines and liquors.

Something that «will materialize very quickly,» Gustavo Flores-Macías, a professor of public policies at Cornell University.

The expert coincides with the position of many analysts, for whom these new measures van To aggravate the economic scenario.

«Both higher tariffs, and uncertainty about future policy, increase inflation fears, given the volume of affected American imports,» they point out from JP Morgan AM in an analysis in their group in Finect.

From the firm they provide an «unprecedented» increase in commercial uncertainty and an increase in costs in a wide variety of industries. Circumstance that obviously has impact on prices. This will strongly affect To final consumers of a diversity of products.

This is afraid, that in a similar way, as happened in 2021 and 2022 (during the time of the pandemic), the inflationary wave expands globally. With this, The economic plans of many nations must be readjusted.

The most alarming is that this inflationary effect possibly Reach everyone. «The economy would almost immediately fall into a recession that would last more than a year, raising the unemployment rate above 7%,» says Moody’s rating.

All affected countries, in greater or lesser intensity

As analysts explain, the effects of tariffs that will enter into force on April 5 will vary according to the country, the level of commercial dependence with the United States and the responses of the affected governments.

Therefore, although the impact is global, Each country will suffer in greater or lesser intensity.

Countries like Brazil and Argentina, large exporters of agricultural products and raw materials to the US, could face difficulties if additional costs affect their competitiveness.

«The ads also arrive at a bad time for Argentina, which struggles to consolidate their economic recovery and fight inflation,» said some economists from the South American country. And it is that tariffs fall on products such as aluminum and steel, which currently represent businesses for about 600 million dollars annually.

Something different occurs in El Salvadorwhose main commercial partner is the United States. Local media consulted Agustín Martínez, president of the National Association of Private Company. In his opinion, tariffs could affect the local production chain of steel and aluminum. However, they trust that the Central American country «does not represent a threat to the US.»

For its part, the Salvadoran Association of Industrials warned of an increase in the cost of the latest generation machinery and deliveries in deliveries.

Chile and Peru, with economies strongly linked to the export of minerals, would also be harmed if US demand is reduced due to the increase in their products.

On the other hand, Venezuela and Nicaragua, which already face economic sanctions and commercial isolation, They will receive an even greater impact in their economies, with the highest tariffs.

It is evident, in this way, that even when the levels of affectation can vary from one country to another, Trump’s tariffs will change the rules of the international game and with it economic dynamics. The most affected again They will be consumers.

In summary, for the common people of the world, Trump’s reciprocal tariffs probably mean the payment of higher prices for goods and services, less job stability and a more uncertain economy.

As reported, cryptootics, it is feared that uncertainty reigns in the coming months and possibly affects markets. Bitcoin’s volatility (BTC) has increased. Although digital currency too could shine as a value refuge In this scenario. It has already happened previously, in countries where inflation grows.

Despite the above, the net effect of tariffs will tend to be negative, especially if a global trade war is unleashed. Countries and people with less resources to adapt, will be the most vulnerable.