President Donald Trump just declared trade war—again. Next week, new tariffs will drop, and this time, “everyone” is on the line, the president said on Friday at the White House during talks with Japanese Prime Minister Shigeru Ishiba.

Trump said he plans to announce the full details at a press conference early in the week, likely Monday or Tuesday. “We’ll be treated evenly, no more, no less,” he told reporters from the Oval. He didn’t specify which countries would get hit or the exact rates, but the warning is broad enough to send US trading partners scrambling.

“I think that’s the only fair way to do it. That way, nobody’s hurt. They charge us. We charge them. It’s the same thing. I seem to be going in that line as opposed to a flat fee, tariff,” Trump said.

Trump’s biggest targets

Automobiles are right in Trump’s crosshairs. “That’s always on the table. It’s a very big deal,” he said during the press conference. The auto industry could see sweeping tariffs directed at rebalancing trade deficits, especially with Europe as Trump isn’t a fan of the European Union’s value-added tax (VAT), which hits US exports particularly hard.

He criticized the EU for setting VAT rates that sometimes go well above 15%, making it expensive for American products to compete. “That levy is through the roof,” Trump told the reporters, pointing out Europe as a major problem.

The president also said that these tariffs may replace the flat 10-20% universal import duty plan he discussed during his campaign. Instead of blanket tariffs, Trump now prefers a tailored, tit-for-tat system. “I seem to be going in that line as opposed to a flat fee, tariff,” he explained, adding that he’d rather hit countries where it hurts most.

Along with cars, Trump is eyeing critical industries like steel, oil, and pharmaceuticals, which he believes are very important to America’s global economic dominance. Just last Monday, the US president announced 25% tariffs on imports from Canada and Mexico but quickly took them back after both countries promised to address his concerns about border security.

But China wasn’t spared, as it got hit with 10% tariffs on Tuesday. As Cryptopolitan reported, the Xi administration fought back back with its own 15% tariffs, though it temporarily paused levies on low-cost goods mailed directly to American consumers. Officials are still working out how to handle that as of publication time.

American consumers pay the price

Once the tariffs kick in, US Customs and Border Protection (CBP) will be on high alert at 330 entry points across the country, including airports, seaports, and road crossings. CBP agents inspect shipments, review documents, and collect penalties if importers break the rules.

The money collected from tariffs goes straight to the US Treasury’s General Fund. But here’s the thing, most of that burden falls on American importers, not foreign exporters. When US businesses import goods that carry a tariff, they often pass the extra cost onto consumers through price hikes, though JPMorgan’s research shows that foreign manufacturers sometimes do lower their prices to help US buyers cope, but chances of that are way too low.

Under current CBP rules, some goods avoid tariffs depending on how they’re processed abroad. For example, US-made products that leave the country and return unchanged are exempt. But if they’ve been “improved” overseas—like gold being turned into jewelry or car parts assembled into vehicles—they’re subject to levies when they re-enter the country.

But Trump’s tariffs are also about revenue. Historically, tariffs once funded most of the federal government’s budget. Today, they make up less than 3% of revenue, according to the Federal Reserve Bank of St. Louis.

With Trump’s new measures, that could change dramatically. The Tax Foundation estimates that combined tariffs on Canada, Mexico, and China could have cost US businesses $1.1 trillion over the next decade. In 2025 alone, nearly $110 billion in tariff revenue is expected if Trump’s plan sticks.

The tariffs Trump imposed on China during his first term—and expanded during Biden’s presidency—are currently generating $77 billion annually. But this money doesn’t come without consequences of course.

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