#TrumpTariffs

Donald Trump’s approach to tariffs, particularly during his second administration beginning in January 2025, has been marked by aggressive and sweeping increases intended to protect U.S. industries and address trade deficits. These policies have had significant economic and geopolitical impacts.

Key Developments in Trump’s Tariff Policy

Initial Tariff Levels and Escalation

Upon inauguration in January 2025, the average effective U.S. tariff rate was 2.5%. By April 2025, this had risen to an estimated 27%, the highest level in over a century, due to the so-called "Liberation Day" tariffs.

Trump escalated the U.S.-China trade war, raising baseline tariffs on Chinese imports to 145%. China retaliated with a minimum 125% tariff on U.S. goods and export restrictions on rare earths.

Tariffs were also imposed on Canada and Mexico (25% on both countries), but exemptions were later granted for goods compliant with the USMCA.