Tariffs in the second Trump administration

During <a href="/facts/Second_presidency_of_Donald_Trump/a3CUnzUu">his second presidency</a>, United States president <a href="/facts/Donald_Trump/pqqKY21P">Donald Trump</a> enacted a series of steep <a href="/facts/Protective_tariff/lUEUSSgC">protective tariffs</a> affecting nearly all <a href="/facts/List_of_imports_of_the_United_States/nxTECgrM">goods imported into the United States</a>. From January to April 2025, the average effective US tariff rate rose from 2.5% to an estimated 27%, the highest level in over a century. Following policy rollbacks prompted by economic turmoil, the average effective tariff rate stood at 15.6% as of June 2025.
Trump raised steel and aluminum tariffs to 50%, introduced a 25% tariff on imported cars, and ordered investigations into pharmaceuticals, copper, and other sectors to support future tariffs. He also invoked unprecedented powers under the <a href="/facts/International_Emergency_Economic_Powers_Act/2nNRCmjv">International Emergency Economic Powers Act</a> (IEEPA) to impose broad, universal tariffs affecting all imports. Although federal courts ruled this use of the IEEPA unconstitutional, the decisions were <a href="/facts/Stay_of_proceedings/Gvp2dVv6">stayed</a> pending appeal, allowing the tariffs to remain in effect. Oral arguments on the appeals are scheduled for July 31, 2025.
On April 2, 2025—a day he called "<a href="/facts/Liberation_Day_tariffs/5oTMaNTj">Liberation Day</a>"—Trump invoked the IEEPA to announce "reciprocal tariffs" on all countries not subject to other sanctions. A universal 10% tariff took effect on April 5. Additional tariffs for 57 major trading partners were planned for April 9, but were postponed until July 8 following <a href="/facts/2025_stock_market_crash/Hraqhh1C">a stock market crash</a> triggered by the tariffs. Trump also imposed 25% <a href="/facts/2025_United_States_trade_war_with_Canada_and_Mexico/T7Ex2McR">tariffs on Canada and Mexico</a> under the IEEPA, but later exempted goods compliant with the the <a href="/facts/United_States%25E2%2580%2593Mexico%25E2%2580%2593Canada_Agreement/qEPH1gYJ">United States–Mexico–Canada Agreement</a> (USMCA). He escalated the <a href="/facts/China%25E2%2580%2593United_States_trade_war/pTMWV5FA">China–United States trade war</a>, with baseline US tariffs on Chinese goods peaking at 145% and Chinese tariffs on U.S. goods reaching 125%. Following a trade agreement, the US reduced its tariffs to 30% and China to 10%. US tariffs on Chinese de minimis shipments were lowered to 54%. China also agreed to resume exports of critical <a href="/facts/Rare_earth_elements/PQSUQumk">rare earth elements</a> it had curtailed in retaliation.
The Trump administration argues that its tariffs will promote domestic manufacturing, protect national security, and substitute for income taxes. The administration views <a href="/facts/Trade_deficit/0kWmf4Cw">trade deficits</a> as inherently harmful, a stance economists criticized as a flawed understanding of trade. The tariffs contributed to downgraded <a href="/facts/GDP_growth/kEXm3jWm">GDP growth</a> projections by the US <a href="/facts/Federal_Reserve/VaCV51ne">Federal Reserve</a>, the <a href="/facts/OECD/CI9W2zGv">OECD</a>, and the <a href="/facts/World_Bank/hIH9uUb2">World Bank</a>. In the first quarter of 2025, US firms and consumers raced to stockpile foreign goods before new tariffs took effect, causing imports to soar 41.3%.

Tariffs in the second Trump administration open-in-new

Tariffs in the second Trump administration