#TrumpTariffs

Donald Trump's tariffs in his second presidency are part of a broader protectionist economic strategy. Here's a breakdown¹:

- *Tariff Rates*: The average effective US tariff rate rose to 27% after Trump's "Liberation Day" tariffs, the highest level in over a century. As of June 1, 2025, the rate stands at 15.1% after some rollbacks.

- *Targeted Countries*: Trump's administration imposed significant tariffs on:

- *China*: 145% baseline tariffs, with retaliatory measures from China, including a minimum 125% tariff on US goods and export restrictions on rare earths.

- *Canada and Mexico*: Initially 25% tariffs, later suspended for goods compliant with the USMCA.

- *Specific Tariffs*:

- *Steel and Aluminum*: 50% tariff on steel and aluminum products from all countries, effective June 4, 2025.

- *Automobiles*: 25% tariff on automobiles.

- *Other Goods*: 10% minimum tariff on all US imports.

The tariffs have sparked controversy and criticism from economists, trade partners, and courts. Some key concerns include:

- *Economic Impact*: Downgraded GDP growth projections and rising recession expectations.

- *Legality*: Courts have ruled that Trump overstepped his authority in imposing certain tariffs, but these decisions are pending appeal.

- *Trade Negotiations*: The administration is engaging in trade deals, including with China, but the 10% universal tariff is expected to remain long-term.