#TradingPsychology
Trump's tariffs, imposed during his presidency, have significantly impacted global trade. Here's a breakdown¹:
- *Tariff Rates*: The average tariff rate on all imports rose from 2.5% in 2024 to 16.5% in 2025, the highest since 1937.
- *Economic Impact*: Trump's tariffs are expected to reduce US GDP by 0.7% and increase tax revenue by $2.9 trillion over the next decade.
- *Trade Partners Affected*:
- *China*: 10% tariff on all imports, with some rates increasing to 34%
- *Canada and Mexico*: 25% tariff, later reduced to 12% for USMCA-compliant imports
- *European Union*: 20% tariff on imports
- *Retaliation*: Affected countries, including China, Canada, and the EU, have imposed retaliatory tariffs on US exports, potentially reducing US GDP by another 0.1%.
Some specific tariffs include:
- *Steel and Aluminum*: 25% tariff on imports, expanded to include derivatives
- *Autos*: 25% tariff on imports, exempting USMCA-compliant imports
- *Semiconductors and Pharmaceuticals*: Tariffs of 25% or higher
These tariffs aim to boost US competitiveness but may lead to higher prices for consumers and businesses.
