#TrumpTariffs
President Trump's tariffs aim to protect US industries but have sparked controversy. Here's a breakdown ¹:
- *Tariff Targets*:
- *China*: 20% tariff on all imports, plus a 125% tariff on certain imports (excluding Section 232 tariffs and excluded items)
- *Canada and Mexico*: 25% tariff on non-USMCA imports, with exemptions for USMCA-compliant goods
- *European Union*: 20% "reciprocal" tariff rate
- *Autos and Auto Parts*: 25% tariff
- *Steel and Aluminum*: Expanded Section 232 tariffs, with rates of 25% on steel and 25% on aluminum (previously 10%)
- *Economic Impact*:
- *US GDP*: Estimated 0.7% reduction in long-run GDP due to imposed and scheduled tariffs
- *Imports*: Expected 16% decline in imports ($542 billion) in 2025
- *Jobs*: Estimated loss of 685,000 full-time equivalent jobs
- *Revenue Effects*:
- *Conventional Basis*: $2.1 trillion increase in federal tax revenue over the next decade
- *Dynamic Basis*: $1.4 trillion increase in federal tax revenue over the next decade (accounting for negative economic effects)
- *Retaliation*:
- *China*: Imposed tariffs on $13.9 billion and $19.5 billion of US exports, with rates of 10-15%
- *Canada*: 25% tariffs on $20.8 billion of US exports, with additional tariffs scheduled
- *European Union*: Tariffs of up to 50% on $8 billion of US exports, with plans to expand to $20 billion
The tariffs have sparked debate, with some arguing they protect US industries and others claiming they harm consumers and the economy.
