#TrumpTariffs Let's break down the latest on Trump's tariffs.

*Trump's Tariff Policies*

Donald Trump's second presidency has seen a significant increase in tariffs, affecting nearly all goods imported into the United States. The average effective US tariff rate rose to 27% in early 2025, the highest level in over a century, before being rolled back to 15.1% as of June 1, 2025.

*Key Tariff Actions*

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

- *Tariffs on Canada and Mexico*: Trump imposed a 25% tariff on both countries but later granted indefinite exemptions for goods compliant with the United States-Mexico-Canada Agreement (USMCA).

- *Steel and Aluminum Tariffs*: A 50% tariff was imposed on steel and aluminum products from all countries, effective June 4, 2025.

- *Automobile Tariffs*: A 25% tariff was imposed on automobiles.

*Impact and Reactions*

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

- The World Trade Organization (WTO) has been criticized for being unable to make final rulings due to the US blocking new appointments to its Appellate Body.

- Economists have criticized Trump's tariff policies, warning of higher prices, larger deficits, and greater inequality ¹.