President Donald Trump’s latest round of import tariffs took effect early Thursday, targeting goods from over 60 countries and the European Union, even as signs of economic strain are beginning to emerge in the United States.

Goods from the EU, Japan, and South Korea are now subject to 15% tariffs, while products from Taiwan, Vietnam, and Bangladesh face 20%. Trump has also announced 25% additional tariffs on India over its Russian oil purchases, bringing the total to 50%. Switzerland faces a 39% tariff, with high duties imposed on drugs and computer chips.

Despite Trump’s assertion that the U.S. is “taking in hundreds of billions of dollars,” economic indicators show potential setbacks. Hiring has slowed, inflationary pressures have increased, and key housing markets are experiencing a decline in property values.

Trump’s newly announced tariffs come into effect

“The economy has become less productive,” said John Silvia, CEO of Dynamic Economic Strategy. “Higher tariff prices lower workers’ real wages.”

Germany's industrial output dropped 1.9% in June, while Indian exporters warned that 55% of their U.S.-bound shipments would be hit, risking client loss.

Trump invoked a 1977 law declaring an economic emergency to implement the tariffs, a move facing legal challenges. Critics, including former House Speaker Paul Ryan, have called the move arbitrary.

Nevertheless, the S&P 500 has risen over 25% since April, and recent tax cuts have boosted White House confidence in continued growth.

But economists caution that the full impact of the tariffs will be felt gradually.

“There’s one person who can afford to be cavalier about the uncertainty—that’s Donald Trump,” said Rachel West, a senior fellow at The Century Foundation. “The rest of Americans are already paying the price.”