#TrumpTariffs Donald Trump's tariff policies aim to protect US industries and enforce trade agreements. Here's what you need to know:
*Key Tariff Proposals and Actions*
- *Universal Tariff*: A 10% tariff on all imports, with higher rates for countries with significant trade surpluses with the US.
- *China-Specific Tariffs*: Trump has imposed 10% to 145% tariffs on Chinese goods, citing unfair trade practices and national security concerns.
- *Section 232 Tariffs*: 25% tariffs on steel and aluminum imports from certain countries, with some exemptions.
- *Auto Tariffs*: Proposed 25% tariffs on auto imports, potentially affecting trade agreements with Canada and Mexico.
*Economic Impact*
- *GDP Reduction*: Trump's tariffs could reduce long-run US GDP by 0.7% to 1.3%, depending on the scope and duration of the tariffs.
- *Revenue Increase*: Tariffs could raise $2.1 trillion in revenue over the next decade, but dynamic estimates suggest a lower figure of $1.4 trillion due to reduced economic output.
- *Household Impact*: Average US households might face a tax increase of over $1,190 in 2025 and $1,462 in 2026 due to higher prices and reduced economic growth.
*Retaliation and Trade Agreements*
- *Retaliatory Tariffs*: Countries like China, Canada, and the European Union have imposed or threatened retaliatory tariffs, affecting $330 billion of US exports.
- *Trade Deals*: Trump has announced plans for a trade deal with the UK, which would maintain the 10% "reciprocal" tariff but lower auto tariffs to 10% on the first 100,000 vehicle imports and eliminate steel and aluminum tariffs ¹.