#TrumpTariffs During his second term, starting January 2025, President Donald Trump significantly expanded protective tariffs on imported goods, aiming to boost U.S. manufacturing, reduce trade deficits, and address issues like illegal immigration and drug trafficking. Key actions include:

Liberation Day Tariffs (April 2, 2025):

A universal 10% tariff on nearly all U.S. imports, with higher "reciprocal" tariffs on 57 countries based on trade deficits. This raised the average U.S. tariff rate from 2.5% to an estimated 27%, the highest in over a century, before rollbacks reduced it to 15.1% by June 1, 2025.

China Trade War Escalation: Tariffs on Chinese imports reached 145% in April 2025, prompting China to impose 125% tariffs on U.S. goods and restrict rare earth exports. A May 2025 agreement in Geneva lowered U.S. tariffs to 30% and Chinese tariffs to 10% for 90 days, though tensions persist.

Canada and Mexico: A 25% tariff was imposed on both countries, tied to demands for curbing drug trafficking (e.g., fentanyl) and immigration. Exemptions were later granted for goods compliant with the USMCA, reducing the effective rate for some products.

Steel and Aluminum: Tariffs doubled from 25% to 50% in June 2025, except for the UK, which secured a temporary exemption at 25%. This aimed to protect U.S. industries but raised costs for American manufacturers.Other Sectors: A 25% tariff on automobiles and the closure of the de minimis exemption for China (effective May 2, 2025) further restricted imports.Trump justified these tariffs using the International Emergency Economic Powers Act (IEEPA), declaring trade deficits and drug flows as national emergencies. He argued tariffs would fund tax cuts, replace income taxes, and incentivize domestic production, though critics dispute these claims.