US Tariffs in Strategic Sectors Expected to Persist Beyond Trump Era

President Donald Trump's aggressive tariff policies have significantly raised the effective U.S. tariff rate from around 2.5% to near 22%, targeting various countries including India with duties as high as 50%. While the tariffs have narrowed the U.S. trade deficit and secured concessions from trading partners, experts warn of potential long-term economic harm such as rising inflation, impacts on jobs, and risks of recession. India has remained calm in response, emphasizing its autonomy in trade decisions despite the doubled tariffs. Reports from JPMorgan Chase indicate that tariffs on sensitive sectors critical to national security, like semiconductors and defense, are likely to remain in place beyond Trump's presidency, reflecting bipartisan support for protecting domestic industries. Market optimism about a return to pre-Trump low-tariff policies may be misplaced, as companies and policymakers adjust to a new trade landscape with persistent tariffs. Some tariffs are politically resilient due to their concentrated benefits for domestic industries and diffuse costs to consumers, suggesting that certain tariffs could survive future administrations, albeit possibly at reduced rates.