#TrumpTariffs Donald Trump's tariffs have been a significant aspect of his trade policy. The Trump administration has utilized tariffs in three primary ways: as a negotiation tool, a punitive tool, and a macroeconomic tool ¹.

*Tariff Types and Their Impacts*

- _Negotiation Tool_: Tariffs have been used to pressure trade partners during negotiations, resulting in new trade agreements like the US-China Phase One trade deal ¹.

- _Punitive Tool_: Tariffs have been imposed to "punish" or "sanction" countries for non-trade issues, such as national security concerns ¹.

- _Macroeconomic Tool_: Tariffs have been used to protect domestic industries, decrease US trade deficits, and increase revenue from duties ¹.

*Recent Developments and Court Rulings*

The Trump administration's tariffs have faced legal challenges. In May 2025, a federal court ruled that the IEEPA tariffs were illegal, and the Trump administration has since appealed the decision ². The US Court of Appeals for the Federal Circuit of Washington, DC, has allowed the IEEPA tariffs to remain in effect until the court rules on the appeal, scheduled for July 31, 2025 ².

*Economic Impact*

The tariffs have had a significant economic impact, with the weighted average applied tariff rate on all imports rising to 16.0% and the average effective tariff rate increasing to 12.3% ². The tariffs are expected to raise $2.0 trillion in revenue over the next decade and reduce US GDP by 0.8% ².