Media Contact
President Trump announced that 14 countries—ranging from smaller trade partners to major suppliers like Japan and South Korea—would face higher tariffs, effective August 1.
Wendong Zhang
Associate Professor
Wendong Zhang is an associate professor of applied economics and policy at Cornell University and the co-author of Economic Impacts of the 2025 Trade Wars, a policy brief detailing how U.S. tariffs could drive global trade realignments and welfare redistribution.
Zhang says:
“These rolling tariff letters are fueling policy uncertainty, leaving firms and allies guessing about who’s next—and at what rate and what sectors have exemptions.
“By floating tariffs as high as 40% to even 100%, the administration has ‘normalized’ the 25% tariff hikes—yet this is still one of the most aggressive and disruptive tariff moves in modern history. This gradual unveiling, paradoxically, risks normalizing what would otherwise be considered exceptionally large tariff hikes.
“Our economic modeling shows that even short-term implementation of almost worldwide tariffs causes widespread harm: trade diversion, consumer price increases, and GDP losses for the U.S. and partners.”
