#TrumpTariffs

President Trump's tariffs are a key component of his economic agenda, aimed at protecting American interests and industries. Here's a breakdown of the current situation:

- *Tariff Rates:* The Trump administration has imposed a minimum 10% tariff on all trading partners, with certain countries and areas facing higher rates. For instance, China is subject to a 30% tariff, down from 145% after a 90-day reprieve was agreed upon in May.

- *Impact on Trade:* The tariffs have led to retaliatory measures from other countries, including China, which imposed an 84% tariff on US goods. The US and China have agreed to slash tariffs for 90 days as trade talks continue.

- *Economic Consequences:* According to J.P. Morgan Research, the average effective tariff rate is expected to settle around 15-18%. The tariffs could reduce global GDP by 1% and US GDP by 1.6% in 2025. Additionally, prices for consumers may rise, with potential increases in costs for goods ranging from autos to canned drinks.

- *Country-Specific Tariffs:*

- *China:* 30% tariff rate after the 90-day reprieve

- *Canada and Mexico:* 25% tariffs on certain goods, with some exemptions

- *EU:* 10% baseline tariff on most goods, with potential retaliatory measures

- *Trade Agreements:* The US and UK have announced a trade framework, reducing import taxes on British cars and implementing a tariff-free quota on beef. However, the 10% baseline tariff on other goods remains.

The tariffs have sparked concerns about a global recession, with J.P. Morgan Research estimating a 40% risk of a recession due to US trade policy. The situation continues to evolve, with ongoing trade talks and negotiations between the US and other countries.