New tariffs take effect, sparking economic concerns

As of today, sweeping new tariffs on imports from nearly 90 countries are officially in effect.

(CNN)- President Donald Trump is calling it “legendary” — but critics warn it could be economically devastating. As of today, sweeping new tariffs on imports from nearly 90 countries are officially in effect, with Customs and Border Protection reporting most range from 11% to 50%. Among the most significant changes is an 84% increase on Chinese goods, adding to earlier hikes this year and bringing the total increase for Chinese imports to a staggering 104%.

“This is an economic armageddon that’s coming for the U.S. consumer and the economy,” said Dan Niles, founder of Niles Investment Management.

President Trump insists his administration is working on “tailored” trade deals that could eventually bring some relief. However, American businesses are absorbing the cost — and passing it on to consumers. “We are the ones that have to pay the government all the tariffs, taxes, whatever you want to call them,” said Bobby Djavaheri, President of Yedi Houseware Appliances. “That all gets billed to us, which we have to bill the consumer at the end.”

Economists warn that Trump’s tariffs could become the largest tax increase in U.S. history, as companies try to adapt to the new landscape. While Trump argues duties don’t apply to American-made products, experts say shifting supply chains or building new factories is a costly and time-consuming process — and domestically produced goods may end up being even more expensive than imported ones were. Senate Minority Leader Chuck Schumer echoed those concerns, saying, “American families will pay more for food and for pharmaceuticals. They’ll pay more for cars and gasoline and clothing — everything.”