Trump outlines what ‘total victory’ looks like in his trade war. It’ll cost you

Trump Doubles Down on Tariffs, Says “Total Victory” Would Mean 50% Import Tax

President Donald Trump has declared that high tariffs are here to stay—and he’d consider it a “total victory” if import taxes reached 50% by next year. That’s according to a new Time interview released Friday.

Trump has already placed sweeping tariffs across a wide range of imports. That includes a 10% tax on nearly all incoming goods and 25% tariffs on steel, aluminum, cars, and products from Canada and Mexico. But the most aggressive measure is a 145% tariff on most Chinese imports.

These moves have pushed America’s average effective tariff rate to 22.8%, according to Fitch Ratings. That’s the highest among developed countries.

Slowing Trade and Rising Uncertainty

The impact on trade has been sharp. Many businesses are struggling under the weight of high tariffs. Some have halted hiring and cut investment, the Federal Reserve reported Wednesday in its Beige Book. The word “uncertainty” appeared 81 times in the report—a record.

Trump said in a Wednesday Oval Office appearance that trade with China has nearly stopped. He blamed both U.S. tariffs and China’s retaliatory measures.

Businesses are now facing tough choices. As warehoused inventory runs out, they’ll need to either import goods at much higher costs or stop offering them. This could mean empty shelves for consumers and more inflation at the checkout line.

Economists Push Back on Reshoring Claims

Trump insists tariffs will make the U.S. rich. “The country will be making a fortune,” he told Time. He believes companies will bring jobs back to the U.S. to avoid the extra costs.

However, many economists and business leaders say this view is unrealistic. Reshoring takes time—often years—and comes with major hurdles. One of them: the U.S. currently has nearly 500,000 unfilled factory jobs, according to the Department of Labor.

Factory construction is also more expensive due to higher costs for materials. And though Trump claims the U.S. is earning “billions a day” from tariffs, the Treasury puts the number in the hundreds of millions. That money is paid by American companies—not foreign ones—and eventually passed to consumers.

Consumers and Markets Feeling the Strain

As costs rise, consumer sentiment is falling. Many companies have pulled back on profit and sales projections. Shoppers are spending less, and it's being felt across nearly every industry.

Markets reacted modestly to Trump’s interview. Stocks dipped slightly on Friday after his comments were published.

Despite that, Trump said his administration is finalizing hundreds of trade deals. He claimed these will improve fairness and bring more manufacturing back to American soil. “I’ve made 200 deals,” Trump told Time, though he gave different timelines for when the public would see them—ranging from two to four weeks.

Deals Still Include Tariffs

Even these future deals aren’t tariff-free. Trump says they will also account for non-tariff factors like value-added taxes, military spending, and other international arrangements he believes are unfair to the U.S.

“We’re a department store,” Trump said. “Everybody wants to come in and take from us… they’re going to pay a price.”

He has recently suggested a possible thaw in tensions with China. But he denies that this shift is due to the stock market downturn or bond market volatility.

“The bond market was getting the yips, but I wasn’t,” Trump said. “I know what we have.”

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