#TrumpTariffs The latest update on Trump tariffs is that President Trump has imposed and threatened various tariffs on several countries, including:
- *Country-Specific Tariffs:*
- *China*: 10% tariffs on all imports, increasing to 145% on most imports, including a 50% "reciprocal" tariff and a 10% baseline tariff.
- *Canada*: 25% tariffs on non-USMCA imports, with a 30-day suspension and exemptions for auto imports and USMCA-compliant goods.
- *Mexico*: 25% tariffs on non-USMCA imports, with a 30-day suspension and exemptions for auto imports and USMCA-compliant goods.
- *European Union*: 20% "reciprocal" tariff on imports, with a planned 50% reciprocal tariff starting June 1.
- *Product-Specific Tariffs:*
- *Steel and Aluminum*: 25% tariffs on steel and aluminum imports, with expanded coverage and removal of country exemptions.
- *Autos*: 25% tariffs on autos and certain auto parts, excluding US content from Canada and Mexico.
- *Semiconductors and Pharmaceuticals*: Planned tariffs of 25% or higher.
- *Retaliation:*
- *China*: Retaliatory tariffs of up to 125% on US exports, reduced to 10% under a 90-day pause.
- *Canada*: Retaliatory tariffs of 25% on US exports, including $20.8 billion effective March 4.
- *European Union*: Retaliatory tariffs of up to 50% on US exports ¹.
These tariffs aim to raise revenue and protect domestic industries but may also lead to higher prices, reduced economic output, and trade deficits. The estimated economic impact includes:
- *GDP Reduction*: 0.7% reduction in long-run US GDP before foreign retaliation.
- *Revenue Increase*: $2.1 trillion in conventional revenue over the next decade.
- *Distributional Effects*: Average tax increase of $1,155 per household in 2025 and $1,397 in 2026.
