#TrumpTariffs Let's break down the latest on Trump's tariffs.
Key Tariff Changes
- *Average Effective US Tariff Rate*: Rose to 27% (highest in over a century) after Trump's "Liberation Day" tariffs, but later reduced to 15.1% after rollbacks.
- *China-US Trade War*: Trump's administration raised baseline tariffs on Chinese imports to 145%, while China imposed a minimum 125% tariff on US goods and export restrictions on rare earths.
- *Steel and Aluminum Tariffs*: Increased to 50% on June 4, 2025, from 25%.
- *Automobile Tariffs*: 25% tariff imposed on automobiles.
Impact and Reactions
- *GDP Growth Projections*: Downgraded by the Federal Reserve and OECD due to tariffs.
- *Recession Expectations*: Rising expectations of a recession.
- *Stock Market Crash*: Trump's tariff announcements triggered a stock market crash.
- *Global Trade*: WTO ruled some of Trump's first-term tariffs violated global trade rules.
Ongoing Developments
- *Trade Deals*: The White House began negotiating trade deals, including reducing tariffs between the US and China.
- *Court Rulings*: The United States Court of International Trade vacated the "fentanyl tariffs" and "reciprocal tariffs", ruling Trump overstepped his authority ¹.