#TrumpTariffs Let's break down Trump's tariffs and their implications.

*Tariff Overview*

The average effective US tariff rate rose to 15.1% as of June 1, 2025, after being rolled back from a peak of 27%, the highest level in over a century. Trump's tariffs aim to protect American workers and industries, but their impact is being closely watched.

*Sector-Specific Tariffs*

- *Steel and Aluminum Tariffs*: 25% tariffs on all steel and aluminum imports, with plans to double the tariff to 50% on some imports starting June 4. This move aims to strengthen domestic production.

- *Automobile Tariffs*: 25% tariff on all imported cars, including those from Mexico and Canada. However, USMCA-compliant vehicles and parts are exempt.

- *China-US Trade War*: Trump escalated the trade war, raising baseline tariffs on Chinese imports to 145%. China retaliated with a minimum 125% tariff on US goods and export restrictions on rare earths.

*Impact and Reactions*

- *Market Impact*: The tariffs contributed to downgraded GDP growth projections by the Federal Reserve and OECD, with rising expectations of a recession.

- *Legal Challenges*: The US Court of International Trade ruled that Trump overstepped his authority by imposing certain tariffs, but an appellate court stayed the decision, allowing the tariffs to remain in effect.

- *Trade Negotiations*: The White House began negotiating trade deals, including reducing tariffs between the US and China, but the 10% universal tariff is expected to remain long-term ¹.