#TrumpTariffs The Trump tariffs refer to the tariffs imposed by President Trump as part of his trade policy. These tariffs aim to protect domestic industries, decrease US trade deficits and increase revenue from duties. There are three primary ways to think about Trump's tariffs ¹:

- *Negotiation Tool*: Tariffs are used as leverage to pressure trade partners during negotiations, potentially resulting in new trade agreements.

- *Punitive Tool*: Tariffs are used to "punish" or "sanction" countries for non-trade issues, offering the ability to escalate tariff rates.

- *Macroeconomic Tool*: Tariffs support macroeconomic goals like protecting domestic industries and encouraging domestic manufacturing.

Some key aspects of Trump's tariff policy include ²:

- *Tariff Rates*: A 20% universal tariff on all imports, 60% tariff on imports from China, and higher tariffs on electric vehicles from China or across the board.

- *Economic Impact*: Estimated reduction in long-run GDP by 1.3% before foreign retaliation, increasing federal tax revenues by $3.8 trillion from 2025 to 2034.

- *Retaliation*: Countries like China, Canada and the European Union have imposed or threatened retaliatory tariffs, affecting US exports and economy.

*Tariff Details*

- *Section 232 Tariffs*: 25% tariff on steel imports and 10% tariff on aluminum imports.

- *IEEPA Tariffs*: 10% baseline tariff on all countries, with scheduled increases for more than 50 trading partners.

- *Country-Specific Tariffs*: 25% tariffs on Canada and Mexico, and 10% tariffs on China.

*Impact on US Economy and Households*

- *GDP Reduction*: Estimated 0.2% reduction in long-run GDP due to imposed tariffs.

- *Job Losses*: Estimated 142,000 full-time equivalent jobs lost due to tariffs.

- *Household Tax Increase*: Average tax increase of $1,219 in 2025 and $1,453 in 2026 per US household ².