#TrumpTariffs

During his second presidency (2025–present), Donald Trump implemented steep protective tariffs on nearly all imported goods, significantly raising the average U.S. tariff rate from 2.5% to 27% between January and April 2025, the highest in over a century. By June 17, 2025, the rate was adjusted to 15.8% after some rollbacks.

Key actions include:

Steel and Aluminum: Tariffs increased to 50%.Automobiles: A 25% tariff on imported cars.

Reciprocal Tariffs: A 10% baseline tariff on most countries, with higher rates (up to 50%) for nations with large trade deficits with the U.S., and up to 245% on China due to retaliatory actions.

IEEPA Use: Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs, though courts ruled this unconstitutional, with decisions stayed pending appeal.

Goals: Aimed to reduce trade deficits, protect American manufacturing, enhance national security, and address issues like illegal immigration and drug trafficking (e.g., fentanyl from China and Mexico).

Impact: Economists warn of higher consumer prices, potential inflation, and global trade disruptions. The OECD downgraded global growth forecasts for 2025, citing trade barriers. U.S. businesses face increased costs, with some passing them to consumers.