Donald Trump was quite vocal during his 2024 campaign, consistently making promises about implementing tariffs. These promises were often not taken seriously by investors, likely due to the ambitious and extensive nature of his proposed actions.

However, as the current president, Trump has demonstrated this week that he was determined to fulfill his campaign promises. His recent decisions align closely with what he had pledged on the campaign trail, including imposing significant tariffs on US trading partners such as China.

During his campaign, he had vowed to impose tariffs ranging from 10% to 20% on US allies and up to 60% on China, with the authority to do so unilaterally. Recently, Trump signed an order to raise tariffs on Chinese goods to 54%, surpassing the initial 60% target in some cases.

Additionally, he has set a minimum tariff of 10% on most other countries, with some facing even higher rates. Despite objections from members of his own party in Congress, Trump proceeded with these tariffs, creating turmoil in the stock market.

Trump justified his actions, likening them to a necessary operation on a patient. Although he had warned about these measures, the markets reacted adversely, causing a significant drop in stock prices as investors grappled with the implications of the heightened tariffs.

These new tariffs are slated to take effect next week, with a baseline rate of 10% for all countries and additional duties for certain nations. Trump has also followed through on his promise to impose a 25% tariff on foreign-made cars, targeting another objective from his campaign agenda.

Despite initial skepticism that Trump's tariff threats were merely negotiation tactics, he has demonstrated seriousness in implementing these measures, leaving limited room for immediate negotiation to lower the rates.