#TrumpTariffs Donald Trump's tariffs are a key component of his economic policy, aimed at protecting American industries and workers. Here's a breakdown ¹:
- *Tariff Rates:*
- *Average Effective US Tariff Rate:* rose to 27%, the highest level in over a century
- *China:* baseline tariffs on Chinese imports increased to 145%
- *Canada and Mexico:* initially imposed 25% tariff, later granted exemptions for USMCA-compliant goods
- *Steel and Aluminum:* 25% tariff on all imports
- *Automobiles:* 25% tariff on all imported cars
- *Rationale:*
- Trump frames these actions as efforts to hold countries accountable for contraband drug trafficking, illegal immigration, and unfair trade practices
- Aims to support domestic manufacturing and reduce trade deficits
- *Impact:*
- Downgraded GDP growth projections by the Federal Reserve and OECD