#TrumpTariffs

Donald Trump's tariff policies have been a significant feature of his presidency, and as of May 2025, there are several ongoing developments and impacts.

Latest Updates and Key Points:

Broad Application of Tariffs: During his second term, Trump has enacted a series of steep protective tariffs on nearly all goods imported into the United States. The average effective US tariff rate rose significantly between January and April 2025, reaching an estimated 27%, the highest in over a century. As of May 2025, it stands at 17.8%.
China Tariffs: Trump has escalated the trade war with China. US tariffs on Chinese imports rose to 145%, with China retaliating by imposing a minimum 125% tariff on US goods. However, in mid-May 2025, an agreement was reached between the US and China to reduce reciprocal tariffs to 10% for a 90-day reprieve, with this action expected by May 14, 2025. This deal aims to reduce China's tariffs, eliminate retaliation, and retain a US baseline tariff while setting a path for future market access discussions for American exports.
"Reciprocal" and Universal Tariffs: On April 2, 2025, Trump announced a minimum 10% "baseline" tariff on all US imports, effective April 5, calling it "Liberation Day." Higher tariffs, ranging from 11% to 50%, were scheduled for 57 specific countries from April 9 but were suspended for 90 days for all countries except China due to market concerns. The 10% minimum tariff and 25% sector-specific tariffs (like steel and aluminum) remain in effect.
EU Tariffs: Trump has threatened a 50% tariff on all goods imported from the European Union, stating that talks were "going nowhere." This threat caused market volatility. However, he later agreed to extend the deadline to July 9, 2025, after a request from the European Commission, indicating a potential for further negotiations