#TrumpTariffs ## Key Developments in Trump's 2025 Tariffs

1. **Implementation & Scope**:

- A baseline 10% tariff on nearly all U.S. imports took effect April 5 ("Liberation Day"), with higher rates for 57 trading partners (11–50%) initially imposed on April 9 .

- China faces up to 145% tariffs (including prior "fentanyl tariffs"), though higher rates were suspended until August 12 after market turmoil . Sector-specific tariffs (e.g., 25% on autos, 50% on steel/aluminum) remain active .

2. **Legal Challenges**:

- On May 28–29, U.S. courts ruled tariffs under the *International Emergency Economic Powers Act* (IEEPA) unconstitutional, but appeals courts granted stays, allowing tariffs to remain in effect during litigation .

3. **Economic Impact**:

- **Short-term**: Inflation rose modestly (2.4% YoY in May), with notable spikes in appliances (+4.3%) and toys (+2.2%) .

- **Long-term**: Projections show significant harm:

- 0.8% GDP reduction and $1,445 avg. household cost in 2026 (Tax Foundation) .

- 6% GDP decline and 5% wage drop by 2054 (Wharton Model) .

4. **Global Retaliation**:

- China, Canada, and the EU imposed counter-tariffs affecting **$330 billion** of U.S. exports. China also restricted rare earth exports critical for tech .

5. **Rationale**:

- Framed as addressing trade deficits ($1.2 trillion in 2024) and "unfair practices" (e.g., foreign VAT disparities). The administration claims tariffs will reshore manufacturing and fund debt reduction .