Ziyad Abdulrahman Ali – Lecturer, College of Political Science, University of Mosul
Amid escalating trade tensions between the United States and other countries, tariffs have emerged as one of the primary tools used by the U.S. administration to pursue its economic goals. In this context, the trade policy announced by the administration in April 2025 introduced sweeping tariffs on imports, raising numerous questions regarding the economic and political implications of such measures. This report examines the economic impact of these tariffs, including their effects on U.S. economic growth, prices, and wages, as well as the anticipated responses from trade partners worldwide.
On April 2, 2025—the date U.S. President Donald Trump unveiled his new tax policy, which he called “Liberation Day”—the U.S. administration declared the implementation of the most extensive tariff increase since the Smoot-Hawley Tariff Act of 1930. This historical legislation is widely regarded as a key contributor to the outbreak of a global trade war and the worsening of the Great Depression.
Under the new “liberation” policy, a universal 10% tariff on all imported goods is set to take effect on April 5, 2025. This will be followed by additional increases targeting specific countries, starting on April 9, 2025. Canada and Mexico, however, will largely be exempt from these new tariffs—at least for the time being. Meanwhile, sector-specific tariffs previously announced will remain in place for products such as steel, aluminum, and automobiles. Separate tariffs are also expected to be imposed on semiconductors, pharmaceuticals, copper, and timber. These will be applied independently of the new comprehensive tariffs and will not be added to them.
