Trump’s Reciprocal Tariffs Trigger Economic Concerns and Market Volatility

New tariffs imposed by former President Trump in April 2025 have sparked concerns about their impact on the US economy and global trade. CICC analysis predicts these reciprocal measures could raise inflation rates and hinder economic growth. The tariffs, exceeding previous levels, are projected to increase the US’s effective tariff rate from 2.4% in 2024 to 25.1%, surpassing even the Smoot-Hawley Tariff Act of 1930.