#TrumpTariffs
The Trump tariffs refer to a series of protectionist trade policies implemented by former US President Donald Trump, aimed at reducing the country's trade deficit and promoting domestic industries. These policies include:
- *Tariffs on China*: A 10% baseline tariff on all imports from China, with higher tariffs on specific goods, reaching up to 145% on most imports.
- *Section 232 Tariffs*: 25% tariffs on steel and 10% on aluminum imports, expanded to cover derivative products and certain countries.
- *Section 301 Tariffs*: Tariffs on Chinese goods worth billions of dollars, imposed due to unfair trade practices.
- *Universal Tariff*: A proposed 10% to 20% universal tariff on all imports.
The Trump administration's tariffs have led to:
- *Increased Revenue*: $2.1 trillion in revenue over the next decade, but $1.4 trillion on a dynamic basis, considering negative economic effects.
- *Economic Impact*: A reduction in US GDP by 0.7% and a loss of 685,000 full-time equivalent jobs.
- *Retaliation*: Countries like China, Canada, and the European Union have imposed retaliatory tariffs, affecting $330 billion of US exports.
Some key updates on the Trump tariffs include ¹ ²:
- *90-Day Pause*: A 90-day pause on escalations with China, reducing the 125% tariff to 10%.
- *US-UK Deal*: A trade deal with the UK to lower auto tariffs and eliminate steel and aluminum tariffs.
- *Tariff Stacking*: An executive order to prevent certain tariffs from stacking, prioritizing auto tariffs and IEEPA "fentanyl" tariffs.
The effects of the Trump tariffs are still being studied, but historical evidence suggests that tariffs can raise prices and reduce economic growth ¹.$TRUMP