Trump tariffs
Trump's tariffs are taxes imposed on imported goods and services, utilized as a tool for negotiation, punishment, or macroeconomic goals. Here are some key aspects ¹:
*Types of Tariffs:*
- *Negotiation Tool:* Used to pressure trade partners during negotiations, increasing US leverage for new trade agreements.
- *Punitive Tool:* Imposed to "punish" or "sanction" countries for non-trade issues or unfair trading practices.
- *Macroeconomic Tool:* Protects domestic industries, decreases US trade deficits, and increases revenue from duties.
*Specific Tariffs:*
- *Section 232 Tariffs:* Imposed on steel and aluminum imports for national security reasons, with rates doubled to 50% on June 4, 2025.
- *Section 301 Tariffs:* Imposed on Chinese goods for unfair trade practices.
- *IEEPA Tariffs:* Imposed on Canada, Mexico, and China for border security and fentanyl issues, though a court ruled these tariffs illegal.
*Economic Impact:*
- Raises prices for US businesses and consumers
- Reduces available quantities of goods and services
- Estimated to raise $2 trillion in revenue over the next decade, but reduce US GDP by 0.8%
- Average tax increase per US household: $1,183 in 2025 and $1,445 in 2026
*Country-Specific Tariffs:*
- *China:* 10% tariffs, increased by another 10% on March 4, 2025, and further increased to 145% on some imports.
- *Canada and Mexico:* 25% tariffs on non-USMCA goods, suspended and reinstated at various times.
- *European Union:* 20% "reciprocal" tariffs, set to take effect July 9, 2025 ².