#TrumpTariffs Donald Trump's tariff policies have been a key aspect of his economic strategy. Here's a breakdown ¹:

Trump's Tariff Approach

- *Protective Tariffs*: Trump enacted steep protective tariffs affecting nearly all goods imported into the US, raising the average effective tariff rate to 27%, the highest level in over a century.

- *Trade Wars*: Trump escalated trade wars with countries like China, Canada, and Mexico, imposing tariffs on steel, aluminum, and automobiles.

- *Reciprocal Tariffs*: Trump introduced "reciprocal tariffs" based on a formula calculating trade deficits, aiming to "drive bilateral trade deficits to zero".

Impacted Countries and Tariffs

- *China*: 145% tariff on Chinese imports, with China retaliating with 125% tariff on US goods.

- *Canada and Mexico*: 25% tariff on non-USMCA compliant goods, later exempted for USMCA-compliant goods.

- *India*: 27% tariff, with India considering removing import tax on US ethane.

- *Japan*: 25% tariff on cars and car parts, 24% tariff on other goods.

- *South Korea*: 25% tariff, with South Korea seeking negotiations.

Economic Impact

- *Stock Market*: Tariff announcements led to market crashes, with the S&P 500 experiencing significant fluctuations.

- *GDP Growth*: Downgraded GDP growth projections due to tariffs.

- *Prices*: Potential price increases and product shortages expected.

Reactions and Negotiations

- *Global Criticism*: Many countries criticized Trump's tariff policies, with some retaliating with their own tariffs.

- *Negotiations*: The US has engaged in trade talks with countries like China, India, and South Korea to reduce tariffs and address trade concerns.