#TrumpTariffs President Donald Trump's administration has been actively enforcing and expanding tariffs, with significant updates recently announced. Here's what's happening:

*Current Tariff Developments*

- *New Tariff Rates*: Trump signed an Executive Order determining that certain tariff rates will expire on August 1, 2025, instead of July 9. New reciprocal tariff rates will take effect on August 1 for many countries.

- *Countries Affected*: Countries receiving letters with new tariff rates include Japan (25%), Korea (25%), South Africa (30%), and several others with rates ranging from 25% to 40%.

- *Trade Negotiations*: Trump aims to establish more balanced trade relationships, welcoming business investments in the US and promising quick approvals for manufacturing projects.¹

*Economic Impact*

- *Tariff Revenue*: Trump's imposed tariffs are expected to raise $2 trillion in revenue over the next decade, but may reduce US GDP by 0.8%. If IEEPA tariffs are permanently enjoined, revenue would decrease to $596 billion.

- *GDP Effect*: The tariffs may reduce market income by 1.1% in 2026 and amount to an average tax increase of $1,183 per US household in 2025.

- *Retaliation*: Countries like China, Canada, and the European Union have imposed or announced retaliatory tariffs, affecting $330 billion of US exports.²

*Tariff Strategies*

- *Negotiation Tool*: Tariffs are used to pressure trade partners during negotiations.

- *Punitive Tool*: Tariffs are used to "punish" or "sanction" countries for non-trade issues.

- *Macroeconomic Tool*: Tariffs aim to protect domestic industries, decrease US trade deficits, and increase revenue.³