$BTC
Donald Trump's tariffs have been a key aspect of his economic policy, particularly in his second term as US President. Here's a breakdown of the current situation ¹:
Tariff Rates
- *Average Effective US Tariff Rate*: rose to 27% (the highest level in over a century) due to the "Liberation Day" tariffs, but was later rolled back to 15.1% as of June 1, 2025
- *China-US Tariffs*: Trump escalated the China-US trade war, raising baseline tariffs on Chinese imports to 145%. China retaliated with a minimum 125% tariff on US goods
- *Steel and Aluminum Tariffs*: 50% tariff on steel and aluminum products from all countries, effective June 4, 2025
- *Automobile Tariffs*: 25% tariff on automobiles
Impact and Reactions
- *Stock Market*: The announcement of "reciprocal tariffs" triggered a stock market crash
- *GDP Growth Projections*: Downgraded by the Federal Reserve and OECD due to the tariffs
- *Recession Expectations*: Rising expectations of a recession
- *Trade Partners*: Canada alleged that tariffs on its exports were intended to damage its economy and pressure annexation into the US
Legality and Challenges
- *Court Rulings*: The US Court of International Trade ruled that Trump overstepped his authority by imposing the "fentanyl tariffs" and "reciprocal tariffs"
- *Appeals*: The decision was stayed pending appeals, allowing the tariffs to remain in effect
- *WTO Disputes*: Several countries initiated disputes regarding Trump's tariffs with the World Trade Organization (WTO)
