#TrumpTariffs
Let's break down the latest on Trump's tariffs.
Current Tariff Rates
- *Average Effective US Tariff Rate*: 15.1% as of June 1, 2025, up from 2.5% in January 2025
- *Tariffs on Chinese Imports*: 145% baseline tariff, with some reduced to 30% for 90 days
- *Tariffs on Steel and Aluminum*: 50% on all countries, except the UK which remains at 25%
- *Automobile Tariffs*: 25% on automobiles and auto parts
Impact and Reactions
- *Trade Wars*: Ongoing trade tensions with China, Canada, and Mexico, with retaliatory tariffs imposed by these countries
- *Stock Market*: Tariff announcements have triggered stock market crashes and concerns about recession
- *GDP Growth*: Downgraded GDP growth projections by the Federal Reserve and OECD due to tariffs
- *Court Rulings*: US courts have ruled that Trump's tariffs exceed his authority, but these decisions are pending appeal
Key Events and Negotiations
- *Liberation Day*: April 2, 2025, when Trump announced "reciprocal tariffs" on all countries not subject to other sanctions
- *Trade Deals*: Negotiations with China, the UK, and other countries to reduce tariffs and address trade deficits
- *National Emergencies*: Trump has declared national emergencies related to border security, energy, and trade deficits to justify tariffs ¹