#TrumpTariffs Donald Trump's tariffs are a key part of his economic policy, aimed at protecting American industries and workers. Here's a breakdown:
Trump's Tariff Policies
- *Average Tariff Rate*: As of June 1, 2025, the average effective US tariff rate stands at 15.1%, significantly higher than the 2.5% rate at the start of Trump's second term.
- *Tariffs on Specific Countries*:
- *China*: Trump escalated the China-US trade war, raising baseline tariffs on Chinese imports to 145%. China retaliated with a minimum 125% tariff on US goods and export restrictions on rare earths.
- *Canada and Mexico*: Trump imposed a 25% tariff on both countries but later granted indefinite exemptions for goods compliant with the United States-Mexico-Canada Agreement (USMCA).
- *Sector-Specific Tariffs*:
- *Steel and Aluminum*: 50% tariff on steel and aluminum products from all countries, effective June 4, 2025.
- *Automobiles*: 25% tariff on automobiles.
Impact and Reactions
- *Stock Market Crash*: The announcement of "reciprocal tariffs" triggered a stock market crash.
- *GDP Growth Projections*: The Federal Reserve and OECD downgraded GDP growth projections due to the tariffs.
- *Retaliation from Trade Partners*: Several countries initiated disputes regarding Trump's tariffs with the World Trade Organization (WTO) ¹.