#TrumpTariffs đ Trump Tariffs: What You Need to Know
1. Scope & Rates
Trumpâs second-term tariffs are sweeping: all Chinese imports now taxed at 145%, baseline U.S. tariffs rose from ~2.5% to around 15% by June 2025 .
Steel and aluminum tariffs were doubled from 25% to 50% on JuneâŻ4 under SectionâŻ232 for national security .
2. Legal Status
A lower court blocked many tariffs in late May, citing lack of presidential authority. However, a federal appeals court put that decision on holdâmeaning tariffs remain in effect until arguments scheduled for July 31 .
3. Trade Deals & Negotiations
Negotiations with 15â18 countries, including China, EU, South Korea, Japan, and the UK, are underway.
U.S.âChina talks in London yielded a âtruceâ: Chinese export curbs lifted, and U.S. retaliation narrowed to a 55% effective rate on Chinese imports .
Bessent suggested the JulyâŻ8 deadline may be extended for âgood-faithâ negotiating partners .
4. Economic Effects
Tariff revenue jumped 78%âcollecting ~$69âŻbillion in five monthsâhelping to narrow the federal deficit .
Inflation remains tame (2.4%), though signs of rising costs are appearing in autos and toys; some companies stockpiled to avoid higher tariffs .
The OECD downgraded global growth forecasts, citing heightened policy uncertainty and protectionism .
5. Real-World Impacts
Small U.S. businesses are seeing innovation and manufacturing slowsâdelays, layoffs, diverted resourcesâdue to tariff unpredictability .
Canned food prices could climb up to 15%, squeezing low-income consumers reliant on SNAP benefits .
Markets remain jittery: Dow fell ~230 points on renewed tariff threats, and the VIX spiked ~5% .
6. Political Pushback & Standoff
Congress is considering the âTrade Review Actâ requiring presidential notification and 60-day approval for new tariffs, provoking a Trump veto threat .
Public opinion is mixedâpolls show low approval for tariffs, though domestic manufacturing interests are divided .