Donald Trump's tariffs have been a central aspect of his economic policy, particularly in his second presidency. Here are some key points about Trump's tariffs:
Tariff Rates
- Average Effective US Tariff Rate: Estimated to be around 27%, the highest level in over a century.
- Tariffs on Chinese Imports: Raised to 145% due to an escalating trade war.
- Tariffs on Steel and Aluminum: 25% tariff imposed on all steel and aluminum imports to strengthen domestic production.
- Tariffs on Automobiles: 25% tariff imposed on all imported cars, including those from Mexico and Canada.
Trade Wars and Retaliation
- Trade War with China: China imposed a minimum 125% tariff on US goods and restricted exports of rare earths critical to high-tech industries in retaliation.
- Trade War with Canada and Mexico: Trump initiated a trade war by imposing a 25% tariff on both countries but later granted indefinite exemptions for goods compliant with the USMCA.
Impact and Criticism
- Stock Market Crash: The announcement of "reciprocal tariffs" prompted retaliation from trade partners and triggered a stock market crash.
- GDP Growth Projections: Downgraded by the Federal Reserve and OECD due to the tariffs.
- Criticism from Economists: Many economists rejected Trump's view of trade deficits as inherently harmful and criticized his tariff policies for leading to higher prices, larger deficits, and greater inequality.
Recent Developments
- Temporary Suspension of Tariffs: Tariffs on goods from 57 trading partners were briefly suspended for 90 days due to concerns over crashing stock and bond markets.
- Deal with the United Kingdom: The US reached its first deal with the UK, cutting tariffs on British metal and car exports and on American beef and ethanol exports up to set quotas.#TrumpTariffs
- Tariff Reduction with China: The US and China agreed to cut tariffs introduced after "Liberation Day" to 10% for 90 days.ยน$BTC 
