#TrumpTariffs Trump's tariffs are a series of protective tariffs imposed during his second presidency, affecting nearly all goods imported into the US. Here's a breakdown ¹:
*Key Tariff Rates*
- *Average Effective 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.
- *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.
- *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.
*Sector-Specific Tariffs*
- *Automobile Tariffs*: 25% tariff on all imported cars, including those from Mexico and Canada, with exemptions for USMCA-compliant vehicles and parts.
- *Digital Sales Tax Investigation*: Trump ordered the USTR to investigate digital service taxes and determine whether to take retaliatory action.
- *Solar Panels*: Tariffs on Chinese solar panel makers with factories in Malaysia, Cambodia, Vietnam, and Thailand, ranging from 41% to 3,521%.
*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.