#TrumpTariffs Donald Trump's tariffs have been a significant aspect of his economic policy, particularly in his second term as US President. Here's a breakdown of the key points¹:

- *Tariff Rates*: The average effective US tariff rate rose to 27% after Trump's "Liberation Day" tariffs, the highest level in over a century. As of June 1, 2025, the rate stands at 15.1% after some rollbacks.

- *Trade Wars*:

- *China*: 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 and export restrictions on rare earths.

- *Canada and Mexico*: Trump initiated a trade war with Canada and Mexico, imposing 25% tariffs, but later granted exemptions for goods compliant with the USMCA.

- *Sector-Specific Tariffs*:

- *Steel and Aluminum*: 50% tariff on steel and aluminum products from all countries, effective June 4, 2025.

- *Automobiles*: 25% tariff on automobiles.

- *Legality and Criticism*:

- *Court Rulings*: The United States Court of International Trade ruled that Trump overstepped his authority by imposing "fentanyl tariffs" and "reciprocal tariffs". The decision was stayed pending appeals.

- *Economic Impact*: Many economists criticized Trump's tariff policies, warning of higher prices, larger deficits, and greater inequality. The tariffs contributed to downgraded GDP growth projections and rising recession expectations.

- *Negotiations and Deals*:

- *China*: The US and China agreed to cut tariffs introduced after "Liberation Day" to 10% for 90 days.

- *United Kingdom*: The US reached a limited framework agreement with the UK, cutting tariffs on certain products while keeping the 10% minimum tariff largely in place.

Overall, Trump's tariffs have sparked controversy and debate, with some arguing they will protect American industries and others warning of negative economic consequences.