#TrumpTariffs President Trump's tariffs are a key aspect of his trade policy, aiming to protect American interests and stop unfair trade practices. Here's a breakdown of the current situation ¹ ²:

- *Tariff Details*: Trump imposed a 10% baseline tariff on all countries, with higher tariffs on trading partners based on their trade balance with the US. For instance, China faces a 145% tariff on most imports, including a 10% baseline tariff and an additional 125% tariff under the reciprocal tariffs, while Canada and Mexico were initially subject to 25% tariffs, later exempted for USMCA-compliant imports.

- *Economic Impact*: The tariffs are expected to reduce long-run US GDP by 0.7% and raise $2.1 trillion in revenue over the next decade. However, they may also lead to higher prices for consumers and businesses, potentially affecting economic growth.

- *Retaliation*: Trading partners like China, Canada, and the European Union have imposed or announced retaliatory tariffs, affecting $330 billion of US exports. These retaliatory measures could reduce US GDP by an additional 0.2%.

- *Recent Developments*: A 90-day pause on escalations with China was announced, reducing the tariff rate from 125% to 10%. Additionally, a trade deal with the UK was outlined, which would lower auto tariffs from 25% to 10% on the first 100,000 vehicle imports and eliminate steel and aluminum tariffs.

Some key statistics to keep in mind ¹:

- *Average Tariff Rate*: The weighted average applied tariff rate on all imports is expected to rise to 15.0%, with the average effective tariff rate increasing to 12.1%.

- *Revenue Impact*: The tariffs are projected to raise $727 billion in revenue over the next decade from the 10% baseline tariff, excluding Canada and Mexico.

- *GDP Impact*: The combined effect of US-imposed tariffs and threatened and imposed retaliatory tariffs could reduce US GDP by 0.9%.