#TrumpTariffs Let's break down the latest on Trump's tariffs.

Trump's Tariff Policies

- *Average Effective Tariff Rate*: As of June 1, 2025, the average effective US tariff rate stands at 15.1%, significantly higher than the 2.5% rate at the start of Trump's second term.

- *Tariffs on China*: Trump's administration has imposed a 145% tariff on Chinese imports, while China has retaliated with a minimum 125% tariff on US goods and export restrictions on rare earths.

- *Tariffs on Steel and Aluminum*: A 50% tariff is now in place for steel and aluminum products from all countries, effective June 4, 2025.

- *Tariffs on Automobiles*: A 25% tariff has been imposed on automobiles.

Impact and Reactions

- *Stock Market Crash*: The announcement of "reciprocal tariffs" triggered a stock market crash, prompting Trump to suspend higher tariffs on goods from 57 trading partners, except China.

- *Global Trade*: The tariffs have led to downgraded GDP growth projections by the Federal Reserve and OECD, with rising expectations of a recession.

- *Retaliation*: Several countries, including China, have initiated disputes regarding Trump's tariffs with the World Trade Organization (WTO).

- *Legal Challenges*: US courts have ruled that Trump overstepped his authority by imposing certain tariffs, but these decisions have been stayed pending appeals.¹