On April 2, 2025, the U.S. administration signed an executive order establishing a baseline 10% tariff on all imported goods and higher tariffs on countries with trade barriers against American products. This sweeping policy, aimed at correcting persistent trade deficits, is likely to have
At Inter CPA LLC, we believe in helping our clients stay ahead of policy changes. Here’s what you need to know and how to prepare.
🧾 What the Executive Order Says
The Executive Order on Regulating Imports with a Reciprocal Tariff introduces a baseline tariff and authorizes higher tariffs on nations with substantial trade barriers against U.S. products. While intended to rectify trade imbalances, this policy introduces significant uncertainty for importers, exporters, and consumers.
📉 Short-Term Implications for Taxpayers
1. Increased Consumer Prices: Tariffs act as taxes on imported goods, leading to higher prices for products such as electronics, clothing, and fresh produce. These increased costs are often passed directly to consumers, effectively reducing disposable income. For instance, the Tax Foundation estimates that a 10% universal tariff could increase taxes on U.S. households by an average of $1,253 annually.
2. Business Disruptions: Companies reliant on global supply chains may experience disruptions and increased operational costs. This uncertainty can lead to postponed investments, hiring freezes, or even layoffs, impacting employment rates and economic stability.
đź“Š Long-Term Implications
1. Slower Economic Growth: Tariffs tend to reduce efficiency by encouraging domestic production in areas where the U.S. may not have a competitive advantage. According to the Tax Foundation, this misallocation of resources and reduced productivity can lead to a decline in GDP and employment (Pomerleau, 2022).
2. Retaliation from Trade Partners: Other countries may impose their own tariffs on U.S. exports, hitting American farmers and manufacturers especially hard. This can create a cycle of economic retaliation that hurts U.S. competitiveness abroad (Tax Foundation, 2023).
âś… How to Prepare: Tips from Inter CPA
1. Adjust Your Budget: Anticipate and plan for increased costs in household budgets. Prioritize essential expenses and identify areas where spending can be reduced to offset higher prices on imported goods.
2. Diversify Investments: Trade tensions can increase market volatility. Work with a financial advisor to reassess your portfolio and protect your long-term goals.
3. Stay Informed: Follow reputable sources and monitor tariff-related news. Understanding these shifts can help you act quickly.
4. Consult with a CPA: At Inter CPA, we help individuals and businesses adapt to changing tax environments. We offer proactive financial planning, integrated reporting, and strategic advice for sustainability and compliance.
📩 Let’s Talk: If you want to understand how these changes might impact your business or family finances, let’s connect.
👉 Schedule a free consultation
📧 info@inter.cpa
đź“š References and additional reading:
White House. (2025, April 2). Regulating imports with a reciprocal tariff to rectify trade practices that contribute to large and persistent annual United States goods trade deficits. https://www.whitehouse.gov/presidential-actions/2025/04/regulating-imports-with-a-reciprocal-tariff-to-rectify-trade-practices-that-contribute-to-large-and-persistent-annual-united-states-goods-trade-deficits/
York, E. (2024, November 6). Revenue Estimates of Trump’s Universal Baseline Tariffs. https://taxfoundation.org/blog/trump-tariffs-revenue-estimates/
Pomerleau, K. (2022). Impact of tariffs and free trade on the U.S. economy. Tax Foundation. https://taxfoundation.org/research/all/federal/impact-of-tariffs-free-trade/
Tax Foundation. (2025). Trump Tariffs: Tracking the Economic Impact of the Trump Trade War. https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/
The Economist. (2025). President Trump’s mindless tariffs will cause economic havoc. https://www.economist.com/leaders/2025/04/03/president-trumps-mindless-tariffs-will-cause-economic-havoc
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