Donald Trump announced sweeping tariffs on some of its largest trading partners on Wednesday, upending decades of US trade policy and threatening to unleash a global trade war on what he has called “liberation day”.
Trump said he will impose a 10% universal tariff on all imported foreign goods in addition to “reciprocal tariffs” on a few dozen countries, charging additional duties onto countries that Trump claims have “cheated” America.
The 10% universal tariff will go into effect on 5 April while the reciprocal tariffs will begin on 9 April.
“This is one of the most important days, in my opinion, in American history,” Trump said in a long-winded speech on the White House lawn. For decades America had been “looted, pillaged and raped” by its trading partners, he said. “In many cases, the friend is worse than the foe.” The Guardian
Objective:
By the end of this lesson, students will be able to:
- Define what a tariff is and explain its economic implications.
- Analyze the recent announcement of new tariffs by former President Donald Trump on April 2, 2025.
- Evaluate the potential impacts of these tariffs on the U.S. and global economies.
Lesson Outline:
I. Introduction
A. Engagement Activity:
- Begin with a question: “Have you ever noticed that some imported products are more expensive than similar domestic products? Why do you think that is?”
- Discuss students’ responses to gauge their prior knowledge.
B. Objective Overview:
- Introduce the day’s objectives and explain the relevance of understanding tariffs in the context of current events.
II. Understanding Tariffs
A. Definition and Purpose:
- Define a tariff: A tariff is a tax imposed by a government on goods and services imported from other countries.
- Discuss the primary purposes of tariffs:
- Revenue Generation: Historically, tariffs have been used to raise government revenue.
- Protection of Domestic Industries: By making imported goods more expensive, tariffs can protect local businesses from foreign competition.
- Political Leverage: Tariffs can be used as a tool to influence the policies or behaviors of other countries.
B. Types of Tariffs:
- Ad Valorem Tariffs: Charged as a fixed percentage of the value of the imported good.
- Specific Tariffs: Charged as a specific amount of money per unit of the imported good.
- Compound Tariffs: A combination of both ad valorem and specific tariffs.
C. Economic Implications:
- Explain how tariffs can lead to higher prices for consumers, potential retaliation from other countries, and impacts on international trade relations.
- Discuss the concept of a trade war and its potential consequences.
III. Case Study: April 2, 2025, Tariff Announcement
A. Contextual Background:
- Provide a brief overview of the historical context leading up to the 2025 tariff announcement, emphasizing previous U.S. trade policies and relationships with key trading partners.
B. Details of the Announcement:
- Present key points from the article:
- Former President Donald Trump announced a 10% universal tariff on all imported goods, effective April 5, 2025.
- Introduction of “reciprocal tariffs” targeting approximately 60 countries accused of unfair trade practices, with tariffs ranging from 10% to 49%, effective April 9, 2025.
- Justification cited: Protecting American industries and addressing trade imbalances.
C. Immediate Reactions:
- Discuss the domestic and international reactions:
- Concerns from U.S. businesses about increased costs and potential consumer price hikes.
- Criticism from international partners and threats of retaliatory measures.
- Market reactions, including stock market volatility.
IV. Group Activity: Analyzing the Impacts
A. Breakout Groups:
- Divide students into small groups and assign each group a specific stakeholder perspective (e.g., U.S. consumers, domestic manufacturers, foreign exporters, government policymakers).
B. Discussion Questions:
- How might the announced tariffs affect your assigned stakeholder group?
- What are the potential short-term and long-term consequences?
- What alternative policy measures could achieve similar objectives without imposing tariffs?
C. Group Presentations:
- Each group presents their analysis to the class.
V. Conclusion and Reflection
A. Summarize Key Points:
- Reiterate the definition and purposes of tariffs.
- Highlight the specifics of the April 2, 2025, tariff announcement and its potential implications.
B. Open Floor for Questions:
- Address any remaining questions or clarifications students may have.
VI. Homework Assignment:
Students will write a one-page reflection or analysis on one of the following topics:
- Evaluate the effectiveness of tariffs as a tool for protecting domestic industries, using historical or contemporary examples.
- Analyze the potential global economic consequences of the 2025 tariff announcement.
- Propose alternative strategies to tariffs that governments can use to address trade imbalances and protect domestic industries.
Key Articles and Sources
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CNN: Provides an overview of the announcement, including the immediate economic implications and potential global retaliation. It highlights the uncertainty surrounding the tariff strategy and its potential to escalate trade conflicts15.
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Foreign Policy: Offers in-depth analysis of the tariffs’ scope, describing them as one of the largest tax hikes in U.S. history. It also discusses potential retaliatory measures from global trading partners like Europe and Asia2.
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White House Fact Sheet: Details the legal framework (International Emergency Economic Powers Act) under which the tariffs were imposed, along with specific implementation timelines3.
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NPR: Focuses on the economic risks for U.S. consumers and businesses, emphasizing how these tariffs could increase costs and disrupt supply chains4.
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Reuters: Examines global economic repercussions, particularly for nations dependent on U.S. trade, and highlights how these tariffs could exacerbate existing economic challenges6.
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Euronews: Summarizes the global market reaction to the announcement, noting significant stock market declines and increased demand for safe-haven assets like gold7.
Essay questions
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Discuss the role of tariffs in shaping a country’s economic policies. How have tariffs influenced global trade relations historically, and what lessons can be applied to the 2025 tariff announcement?
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Analyze the potential winners and losers of the new U.S. tariffs announced in 2025. Consider perspectives from domestic businesses, consumers, international trading partners, and policymakers.
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Compare and contrast the use of tariffs with other economic policy tools such as subsidies, quotas, and trade agreements. Which approach is most effective in achieving economic stability and growth?