#TrumpTariffs Tariffs during Trump's administration (2025)
1. General Tariffs
On April 2, 2025, President Trump imposed a 10% tariff on all imports to the United States.
Higher tariffs (from 11% to 50%) were imposed on goods from 57 countries but were later suspended for most countries, with a 10% tariff remaining in effect.
2. Tariffs on China
Tariffs on Chinese imports have been raised to 145%, and China responded with a 125% tariff on American goods and banned the export of rare metals.
A 90-day truce was reached that reduced American tariffs on China to 30%.
3. Tariffs on Specific Sectors
The United States imposed an additional 25% tariff on steel, aluminum, and cars from all countries.
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Economic Impact
Inflation
Despite expectations, the inflation rate fell to 2.3% in April 2025, but prices are expected to rise later as inventory depletes.
Economists expect a price increase of 1.7% over the year, equivalent to about $2,800 per American household.
Recession Risk
JPMorgan reduced the recession probability in 2025 from 60% to below 50% after the easing with China, viewing the tariff reduction as equivalent to a $300 billion tax cut.
Revenue and Deficit
The U.S. government recorded $16.3 billion in customs revenue in April, but it is still insufficient to cover the federal deficit exceeding $1 trillion.
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Global Reactions and Outcomes
The Agricultural Sector
Farmers, especially soybean farmers, are concerned about declining Chinese demand, despite the recent truce.
International Reactions
The United Kingdom signed an agreement with the United States to avoid tariffs.
Other countries are seeking to negotiate to avoid negative impacts on their economies.
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Political and Legal Developments
California Governor Gavin Newsom filed a lawsuit to stop the tariffs due to their impact on the state budget.
The White House's policy shows relative flexibility, as some tariffs were eased after warnings of economic damage.
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Summary
Trump's tariff policies for 2025 reflect an escalating trend in trade protectionism, with mixed outcomes for the U.S. and global economy. While the truce with China reduced tensions, risks to inflation and future economic growth remain.
