This is one time in life when everyone should hope that President Donald Trump is the genius ten-dimensional chess player that MAGA fans think he is and not the ignorant fool many of his opponents believe him to be.

If he is playing a game of 10-D chess in the implementation of massive worldwide tariffs this week, it hasn’t been a very fun game so far for stockholders around the world.

The Dow Jones Industrial Average started drifting down after Trump took office on Monday, Jan. 20, and then, on Wednesday, April 3, after a brutal trading day, the average was down nearly another 1,700 – the largest one-day plummet since the sell-off when COVID-19 hit in early 2020.

In a statement posted on Whitehouse.gov, the Trump administration said this was a bold move meant to strengthen the US economy and national security.

 Trump declared on Wednesday that foreign trade and economic practices have created a “national emergency.” He cited large and persistent trade deficits that he says undermine American manufacturing and this country’s critical supply chains.

In response, Trump said, he was implementing a sweeping tariff policy aimed at restoring economic sovereignty and reducing reliance on foreign adversaries.

Trump claimed authority for the move under the International Emergency Economic Powers Act of 1977 – which is meant to address “economic emergencies” posed by unfair trade practices.

As part of the new tariffs package, a baseline 10 percent tariff will be imposed on every country in the world, taking effect at 12:01 a.m. Eastern Daylight Time on Saturday, April 5.

Also, an individualized reciprocal higher tariff will be applied to nations with the largest trade deficits with the US. Those tariffs are set to take effect at 12:01 a.m. Eastern Daylight Time on Wednesday, April 9.

“These tariffs will remain in place until the threat posed by the trade deficit is resolved,” the White House memo stated.

Trump’s announcement from the White House Wednesday afternoon of sweeping new tariffs elicited a tidal wave of criticism from various sectors, including business leaders, economists and international allies. The administration decided to impose a baseline 10 percent tariff on all imported goods, with higher rates targeting specific countries – such as China (34 percent), the European Union (20 percent) and Vietnam (46 percent).

That has raised serious concerns about potential economic repercussions worldwide.

China has condemned the tariffs, particularly the 34 percent levy on its exports, labeling the move as “bullying” and has initiated retaliatory measures. ​

The European Union has criticized the tariffs as protectionist and harmful to global trade, with European Commission President Ursula von der Leyen warning of detrimental effects on international alliances. The EU is considering countermeasures –  including potential taxes on US tech firms. ​

Japan has expressed deep concern over the 24 percent tariff on its exports, with Finance Minister Katsunobu Kato emphasizing the need to assess the impact on the global economy and indicating that Japan may seek exemptions. ​

South Korea has announced measures of support for industries affected by the 25 percent tariff on its goods and also stated that government leaders are closely monitoring the situation. ​

After the announcement, the US Chamber of Commerce expressed strong opposition to the tariffs, emphasizing the potential burden on American consumers.

John Murphy, the Chamber’s senior vice president and head of international affairs, said, “The imposition of tariffs under IEEPA is unprecedented, won’t solve these problems and will only raise prices for American families and upend supply chains.”

The National Association of Manufacturers stressed the negative impact on US factories and their employees. NAM CEO Jay Timmons stated, “The ripple effects will be severe, particularly for small and medium-sized manufacturers that lack the flexibility and capital to rapidly find alternative suppliers or absorb skyrocketing energy costs.”

Many in the automotive sector – which is heavily reliant on international supply chains – voiced apprehensions about the new tariffs. The Motor & Equipment Manufacturers Association warned that the tariffs would have “severe consequences for the US vehicle supplier industry, jeopardizing American jobs, increasing costs for consumers, and undermining the highly integrated North American supply chain that is critical to US competitiveness.”

Economists have cautioned that the tariffs could bring a new round of inflation conjoined with slow economic growth.

The Guardian reported that, while the administration sees the tariffs as a way to revive American industry, the strategy may increase domestic prices – in contradiction to Trump’s campaign promise to reduce the cost of living.

Current polling shows that the economy is the number one issue on Americans’ minds – and Trump won the 2024 election largely due to the perception that he would be better for the economy than Democratic presidential contender Kamala Harris.

On Tuesday, international allies also expressed dismay. Canada announced immediate retaliatory tariffs on US goods, with Prime Minister Justin Trudeau calling the US tariffs “unjustified.”

The European Union and China have indicated plans for countermeasures, raising fears of a prolonged trade war.

Soon after the announcement, the Australian Securities Exchange (ASX) suffered a sharp downturn, with the ASX 200 index falling over 2 percent, led by export-sensitive stocks. Some market analysts anticipate a global economic slowdown due to the tariffs, with the US potentially entering a recession.

The broad consensus among business leaders, economists, and international partners is that President Trump’s new tariffs could have far-reaching negative consequences. Critics warn of increased consumer prices, disrupted supply chains, potential job losses and highly strained international relations.

Trump’s order also allows for tariff modifications—adjustments upward if trading partners retaliate or downward if they make significant efforts to correct non-reciprocal trade practices.  Many of those who are betting stocks will rebound believe that this is a negotiating tool.  In a CNBC Fast Money panel discussion right after the tariffs were announced, there was a debate at the table as to whether this was “politics or policy.”  The thinking is that, if Trump is just using the tariffs as a negotiating tool, then the US economy can survive.

Under the new tariff plan, certain goods will be exempt, including pharmaceuticals, semiconductors, steel, aluminum, and energy resources unavailable in the US.

US-Mexico-Canada Agreement (USMCA)-compliant goods will remain tariff-free, while non-compliant goods will face tariffs of up to 25 percent.

Trump says his tariff package is aimed at countering economic policies that, he argues, have disadvantaged American workers for years.

“For too long, other nations have taken advantage of our open markets while imposing unfair restrictions on American businesses,” he said on April 2.

The administration points to foreign value-added taxes (VAT), currency manipulation and non-tariff barriers as factors that contribute to the annual $1.2 trillion trade deficit for the US.

The administration also cited the economic cost of counterfeit goods and intellectual property theft, which administration officials claim costs the US. between $225 billion and $600 billion annually.

 “Fake pharmaceuticals laced with fentanyl and pirated software are not just economic issues; they are threats to public safety and national security,” the White House statement emphasized.

One of the primary goals of these tariffs is to grow US manufacturing, which has seen a decline for the past two decades. In 2001, the US accounted for 28 percent of global manufacturing output; by 2023, that number had dropped to 17 percent. The loss of nearly five million manufacturing jobs over this period has weakened domestic production capacity, particularly in advanced sectors such as technology, automotive goods, and shipbuilding.

The tariffs certainly didn’t have that effect the first day after the announcement: Some companies announced layoffs in the US in anticipation of the tariffs.

Trump contends that the new tariffs will encourage companies to reshore production, leading to job growth in key industries.

“Made in America is not just a slogan—it’s a commitment to economic security,” Trump stated.

The administration also argues that the US has long maintained some of the lowest tariffs globally, while key trading partners impose significantly higher duties on American exports.

Here are some examples:

  • The US levies a 2.5 percent tariff on imported passenger vehicles, while the European Union imposes a 10 percent tariff and India a 70 percent tariff on the same product.
  • Networking equipment is tariff-free in the US, yet India imposes tariffs ranging from 10 percent to 20 percent.
  • US ethanol faces an 18 percent tariff in Brazil and a 30 percent tariff in Indonesia, while the US charges only 2.5 percent.
  • US apples enter Turkey and India at 60 percent and 50 percent tariffs, respectively, despite being duty-free in the US.

Beyond tariffs, non-tariff barriers such as excessive regulatory hurdles and import bans have further restricted US exports.

 “For decades, China, Germany, Japan, and South Korea have suppressed domestic consumption to boost exports at our expense,” a White House official stated. The administration estimates that removing these barriers could increase US exports by billions annually.

The administration argues that maintaining a strong domestic manufacturing base is critical to national security.

“Stockpiles of essential military goods are dangerously low,” the White House warned in the statement, highlighting that some sectors such as bio-manufacturing, batteries and microelectronics are vital for defense readiness. The vulnerability of US supply chains became painfully evident during the COVID-19 pandemic, underscoring the need for greater self-reliance.

While administration officials say they are confident in the positive economic impact of the tariffs, critics argue that the move will raise the prices of consumer goods and lead to retaliatory actions from major trading partners. However, Trump officials counter by citing studies that indicate minimal inflationary effects from tariffs implemented during his first term. Those in the first term were very limited and not nearly as draconian.

According to the Economic Policy Institute, the tariffs imposed between 2017 and 2020 had no significant impact on inflation and did lead to reshoring in America for several key industries such as steel production.

White House officials say the move will grow the US economy by $728 billion, create 2.8 million jobs and increase real household incomes by 5.7 percent.

Trump framed these measures as fulfilling a campaign promise to put American workers first.

“Access to the American market is a privilege, not a right,” he asserted.

With the sweeping new tariff policy, the administration hopes to reshape the global trade landscape in favor of America.

So far, at least, the plan has had the opposite effect though Trump, who warned there will be pain,

He said “I think it’s going very well.”

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