Donald Trump has introduced a large series of tariffs, upsetting global trade. Tariffs are taxes on imports that are paid by distributors when they import targeted goods into the country.
For instance, a 25 percent tariff on Mexico enacted by the US would mean if Chipotle wanted to directly purchase tomatoes from Mexico, they would have to pay a 25 percent tax on the price in order to import them into the US. This would make purchasing tomatoes from an American farm more profitable for Chipotle, which is the purpose of tariffs: to promote local industries and manufacturing.
During his inaugural address, Trump pledged to “tariff and tax foreign countries to enrich our citizens.” To attempt this, he has utilized a volatile and chaotic approach to targeting specific industries alongside broader levies against many of the country’s largest trade partners.
At LM, this means we could see something akin to the early 2020’s, when prices rose for nearly every type of product. The stock market has also struggled, meaning many people—LM parents included—who have invested in stocks, whether they directly invested or have retirement plans such as a 401K, could see decreased value.
Trump currently has a minimum of ten percent tariffs on nearly every country and territory, along with more than 100 percent total tariffs on China.
Sania Mirzanschall, who teaches AP Economics at LM, believes the tariffs could directly affect LM families. She explained that “a lot of child products, like strollers, toys, among other things, come from China…[The tariffs] will hit families pretty hard, probably harder than other demographics.”
Students have expressed concern as well. Alistair Browning ’26 shared, “There’s definitely a sort of economic uncertainty…I hear my parents talking more about financial stuff than they did previously.”
Many countries have essentially matched the tariffs by implementing their own taxes on American goods. This back-and-forth will likely lead to increased prices across the board for consumers due to companies paying steeper prices for foreign goods. Many economists have predicted that the increased prices could lead to another temporary inflationary period.
While the exact nature of global trade and the US’ role in it remains to be seen, it is certain that LM will feel the reverberations of Trump’s policies on our economy.
