Trump Administration Imposes Universal 10% Tariff and Higher Rates on Select Countries
On April 1, 2025, President Donald Trump announced a universal 10% tariff on all imports, with higher rates for 57 trading partners, including a 145% tariff on Chinese imports. The abrupt implementation of these tariffs led to significant market instability, with the U.S. stock market experiencing its largest single-day drop since the COVID-19 pandemic. The administration later paused the tariffs for 90 days for most countries, excluding China.
Trump Administration Ends 'De Minimis' Rule, Imposes Tariffs on Low-Value Imports
President Trump's administration terminated the 'de minimis' rule, which previously allowed duty-free imports under $800 from countries like China and Hong Kong. The new policy imposes a 30% tariff or $25 per item, increasing to $50 in June. This change significantly affects fast fashion retailers such as Shein and Temu, which relied on the exemption to offer low-cost goods to U.S. consumers.
Trump Administration Initiates Mass Layoffs of Federal Employees
As part of a government efficiency initiative led by Elon Musk, the Trump administration began mass layoffs of federal employees on April 1, 2025. Approximately 60,000 workers were terminated, including entire teams within agencies like the CDC. The layoffs aimed to reduce federal expenditures and bureaucracy but raised concerns about the loss of critical public services and institutional knowledge.