The Trump tariffs refer to a series of taxes imposed on imported goods from various countries, including China, Canada, Mexico, and the European Union, as part of the Trump administration's trade policies. Here's a breakdown of the tariffs:
Key Tariff Policies
- *China*: 10% tariff on all imports, with scheduled increases to 145% on most imports, excluding certain products.
- *Canada and Mexico*: 25% tariffs under International Emergency Economic Powers Act (IEEPA) authority, with exemptions for USMCA-compliant imports.
- *Universal Tariff*: 10% baseline tariff on imports from nearly every US trading partner, with higher tariffs on trading partners with significant trade balances with the US.
- *Autos*: 25% tariffs on autos and certain auto parts, excluding US content of imports from Canada and Mexico.
- *Steel and Aluminum*: 25% tariffs on steel and aluminum imports, with expanded product coverage and ended country exemptions.
Economic Impact
The Tax Foundation estimates that these tariffs will:
- Reduce long-run US GDP by 0.7%
- Raise $2.1 trillion in revenue over the next decade on a conventional basis
- Increase federal tax revenues by $157.4 billion in 2025, or 0.52% of GDP
- Affect approximately $2.3 trillion of US goods imports, or 71% of US goods imports
Retaliation
Countries like China, Canada, and the European Union have announced or imposed retaliatory tariffs, affecting $330 billion of US exports. This retaliation is estimated to reduce US GDP by another 0.2% ¹.
