#TrumpTariffs

Let's break down what's happening with Trump's tariffs.

*Key Tariff Changes*

- *Average Effective Tariff Rate*: Rose to 27% after Trump's "Liberation Day" tariffs, later adjusted to 15.1% as of June 1, 2025.

- *China-US Trade War*: Trump's administration raised baseline tariffs on Chinese imports to 145%, while China imposed a minimum 125% tariff on US goods.

- *Steel and Aluminum Tariffs*: Increased to 50% on June 4, 2025, with the UK remaining at 25% due to ongoing trade negotiations.

- *Automobile Tariffs*: A 25% tariff was imposed on automobiles.

*Impact and Reactions*

- *Stock Market Crash*: The announcement of "reciprocal tariffs" triggered a stock market crash, prompting the suspension of higher tariffs for 90 days on all countries except China.

- *Global Trade*: The World Trade Organization (WTO) has disputes regarding Trump's tariffs, but the US has paralyzed the WTO's Appellate Body since 2019.

- *Economic Projections*: Downgraded GDP growth projections and rising recession expectations due to tariffs ¹.

*Controversies and Legal Challenges*

- *Legality*: The US Constitution grants Congress the authority to levy taxes, but Trump has used laws like the Trade Expansion Act and National Emergencies Act to impose tariffs unilaterally.

- *Court Rulings*: The United States Court of International Trade ruled that Trump overstepped his authority by imposing certain tariffs, but the decision was stayed pending appeals.