On Wednesday, April 2, 2025, President Donald Trump signed into law the largest tariff order in the history of the United States. But what does this actually mean?

A tariff is a tax on goods imported or exported from a country. In this case, Trump has implemented specific tariffs targeted at various countries, even including Norwalk Island, which is uninhabited. 

Lets get specific: If a car imported from, let’s say Germany, used to cost $40,000, the exporter will now have to pay an additional $10,000 in tariffs just to bring it into the U.S. That cost will almost certainly be passed on to the consumer. This means prices are likely to rise – especially in the short term. 

Tariffs are, in many ways, the opposite of free trade. But we also have to consider fair trade. Take the UK, for example. The UK imposes a 20 – 25% VAT tariff on all U.S. imports to protect its domestic market. That may be understandable. But what doesn’t make sense is that the U.S. charges 0% on UK imports in return. That’s an imbalance. 

Now let’s look at Canada. U.S. companies generate $350 billion annually in Canada, while Canadian companies earn $412 billion in the U.S. – a $62 billion trade deficit. Sure, some of this can be explained by the U.S’s larger population and higher GDP per capita. But Trump’s goal appears to be addressing this imbalance and pushing for a fairer system.

Let me make it very clear: I am not defending President Trump. But I am  a believer in both free and fair trade. 

Trump’s tariff move is extremely risky, especially the way he is channeling it. It could set U.S. diplomacy back years. On the flip side, it could also pressure Europe to take a firmer stance against China’s growing economic dominance. If that happens, it could isolate China and predict more global manufacturing and trade back to the U.S. — especially in industries like  automobile production, which is the backbone of American industry. In theory, if handled carefully and diplomatically, these tariffs could eventually lead to a 0% tariff or something low among allies in the free world. That would strengthen global trade partnerships, close the trade deficit, hurt China’s strategic growth and revive American jobs and manufacturing. But here’s the catch — we can’t produce everything we need here. That’s why this needs to be played with extreme precision. Right now, we’re in dangerous waters. This move could either launch America into a new era of dominance or cause serious economic setbacks. I acknowledge last week’s stock market plunge, but last week’s economic bust was not a setback but a market response. 

I’m rooting for America to soar. But I’m also warning President Trump and his advisors: there’s a fine line between bold strategy and reckless policy. I understand the potential upsides, but the risks are just as real. It’s all about execution.