Duringhis second term asPresident of the United States,Donald Trump enacted a series of steeptariffs affectingnearly all goods imported into the country.[1] From January to April 2025, the overall average effective US tariff rate rose from 2.5% to an estimated 27%—the highest level in over a century.[2][3] After changes and negotiations, the overall average effective tariff rate was 16.8% as of November 2025.[4] US tariff revenue was $287 billion in 2025, a 192% increase from 2024.[5]
UnderSection 232 of the 1962Trade Expansion Act, Trump raisedsteel,aluminum, andcopper tariffs to 50%. He introduced a 25% tariff on imported cars from most countries and a 100% tariff on some pharmaceuticals. New tariffs on semiconductors and other sectors are under consideration.
Trump also claimed unprecedented tariff authority under theInternational Emergency Economic Powers Act (IEEPA). On April 2, 2025, he invoked the law to impose"reciprocal tariffs" on imports from all countries not subject to other sanctions. A universal 10% tariff took effect on April 5. Although plans for additional country-specific "reciprocal tariffs" were delayed in the wake of the2025 stock market crash, they were implemented with changes on August 7. Thede minimis exemption was eliminated effective August 29, 2025, under the IEEPA. Legal challenges to tariffs imposed under the IEEPA were consolidated into the caseLearning Resources v. Trump; a decision by theSupreme Court is imminent.
The Trump administration argues that its tariffs will promote domestic manufacturing, protect national security, and substitute for federal income taxes. The administration viewstrade deficits as inherently harmful, a stance economists criticized as a flawed understanding of trade.[6][7][8][9] Although Trump has said foreign countries pay his tariffs, US tariffs arefees paid by US importers of foreign goods.[10][11] The tariffs sparked atrade war with Canada and Mexico and escalated theChina–United States trade war.
Studies have shown that the tariffs have increased expenses and reduced earnings for companies[12][13][14][15] and have increased costs for households.[13] Jobs growth slowed significantly in 2025, and the promised growth in manufacturing jobs has not been realized.[16][17] Corporate bankruptcies in the United States increased to the highest level since 2010.[18][19][20] However, although many economists and economic research bodies predicted slower growth and even a possiblerecession due to the tariffs, U.S. GDP has continued to grow, which partially has been attributed to backtracking by Trump off of the initial high tariff rates.[21][22]
The 1990s and 2000s saw a dramatic expansion in global goods trade as improvements in communications and shipping technology made global outsourcing more feasible and trade deals reduced tariffs and other barriers to commerce.[23][24] Although the aggregate gains to the United States were substantial, the benefits of globalization were unevenly distributed; high-skilled workers generally prospered, while Americans with fewer skills and less geographic mobility struggled to adapt to rapid economic change.[25][26]
Although U.S. manufacturing employment had been declining for decades, job losses accelerated in the 2000s after the United States normalized trade relations with China.[27] The surge inoutsourcing, alongside advancements inautomation, led to localized depressions in many manufacturing-dependent communities.[26][27] Laid off manufacturing workers typically did not relocate or transition into new industries, even after their communities rebounded, and instead remained unemployed long term.[26] Research indicates that these regions became more politically polarized and that their legislators increasingly supported protectionist policies.[28]
During the 2000s, public opinion surveys and political rhetoric began to reflect growing skepticism toward international economic integration, a trend that intensified following theGreat Financial Crisis.[28] In 2008, Barack Obama blamedNAFTA for the loss of a million jobs and stated, "we can’t keep passing unfair trade deals like NAFTA that put special interests over workers’ interests."[29][30]
According toJeffry Frieden, 2016 "was the first time since the 1930s that both major parties had candidates for the presidential nomination who were openly hostile to economic integration, and that any major party had an actual nominee with similar views. The victory of Donald Trump in the2016 presidential election marked the victory of aneconomic nationalism that had long been far from the mainstream of American politics."[28] Trump’s embrace of restrictive trade policies and broad tariffs represented a sharp departure from the Republican Party’s general support for free trade over the preceding 70 years, and a partial return to the party’sprotectionist orientation in the early 20th century.[28]
In 2018, Trump imposedtariffs on steel and aluminum imports.[31] He also initiated theChina–United States trade war, which subjected 60% of US-China trade to 20% tariffs.[32] Most sources say that the trade war did not achieve its goals: instead, the U.S. trade deficit widened, growth slowed, manufacturing jobs did not return, and prices rose.[33]
In 2020, the US, Mexico and Canada renegotiated theNorth American Free Trade Agreement (NAFTA) as theUS–Mexico–Canada Agreement (USMCA) and recommitted to 0% tariffs on most products traded between them. Five weeks after the USMCA went into effect, Trump used an exemption for national security concerns to implement a 10% tariff on Canadian aluminum after claiming it was flooding the US market.[37][38] He withdrew the tariff a month later, three hours before the29th Canadian Ministry planned to retaliate.[39]
During his2024 presidential campaign, Trumppledged to impose even larger tariffs than in his first term, including 60% on China, 100% on Mexico, and 20% on all other countries. He also proposed tariffs to penalize US companies that outsourced manufacturing, such as a 200% tariff onJohn Deere.[40] He proposed using tariffs to achieve a wide range of goals, including preventing war, reducingtrade deficits, improvingborder security, and subsidizing childcare.[11]
In April 2025, Trump suggested tariff revenues could eventually replace income taxes, at least for those making less than $200,000 per year,[41] although others estimated it would cover less than 25% of that cost[42] and less if import volumes fell.[43] TheTax Foundation deemed the idea "mathematically impossible".[44]
On November 5, 2024, shortly after the2024 United States presidential election, Trump acknowledged that tariffs might cause "some pain" for Americans but said, "it will all be worth the price that must be paid".[45]
Although the Constitution grantsCongress the sole authority to levy taxes, including tariffs, Congress has passed laws allowing the President to impose tariffs for national security reasons unilaterally.[49] In his second term, Trump added tariffs to steel, aluminum, and auto imports under Section 232 of theTrade Expansion Act (TEA), which allows the President to modify imports if theSecretary of Commerce conducts an investigation, holds public hearings, and determines that the imports threaten national security.[50][51] Trump directed theUSTR to initiate similar investigations to impose tariffs underSection 301 of theTrade Act of 1974.[52]
Trump also invoked unprecedented powers under theNational Emergencies Act (NEA) and theInternational Emergency Economic Powers Act (IEEPA) by declaringmultiple "national emergencies" related to border security, energy, and trade deficits.[53][54] Declaring these emergencies allowed Trump to enact tariffs quickly without following the complex procedures required by TEA or other trade statutes and did not require congressional approval.[55] While the IEEPA had been used to enacteconomic sanctions, it had never before been used to enact tariffs. As he signed the orders, Trump stated that declaring an emergency "means you can do whatever you have to do to get out of that problem."[53]
To terminate a national emergency under the NEA, a member of Congress may file a privileged resolution requiring theirchamber to vote on the topic within 15 days.Democratic representatives introduced resolutions to end several of Trump's national emergencies justifying tariffs, but these efforts were blocked by theRepublican congressional majority.[56][57][58][59][60]JD Vance cast a tie-breaking vote in the Senate to uphold the emergency underpinning the "Liberation Day" tariffs.[56]
Several countries initiated disputes regarding Trump's tariffs with theWorld Trade Organization (WTO), a regulator ofinternational trade.[61][62] However, the United Stateshas de facto paralyzed the WTO since 2019 by blocking new appointments to itsAppellate Body. Without a functioning Appellate Body, no final rulings can be made.[63] On March 4, 2025, the US notified the WTO that it would suspend contributions to its budget indefinitely. The US was set to provide about 11% of the WTO's $232 million 2024 budget, a fee based on the country's share of global trade.[64]
At least seven cases were filed in American federal courts challenging Trump's authority to impose tariffs under IEEPA.[65][66] Central to each case is the argument that the imposition of tariffs, in the absence of clear congressional authorization, may constitute an overextension of executive power into areas that are traditionally reserved for the legislative branch.[67][68][69] Several complaints invoke thenondelegation doctrine, asserting that the IEEPA, as applied, grants the executive branch an excessively broad scope of discretion. In addition to constitutional claims, the cases highlight significant economic consequences for states, businesses, and individuals, emphasizing the potential for such executive action to set a precedent for expansive policymaking beyond the intended purpose of emergency economic legislation.[67][68][69]
On May 28, 2025, theUnited States Court of International Trade (CIT) issued a summary judgement forV.O.S. Selections, Inc. v. United States andOregon v. Department of Homeland Security and ruled Trump had exceeded his authority under the IEEPA.[70][71] The CIT found the IEEPA tariffs "illegal because the triggering emergency (fentanyl trafficking and trade deficits) bore no rational connection to the trade measures imposed."[72] InLearning Resources v. Trump, a Washington D.C. district court went further by holding that the IEEPA does not authorize tariffs at all.[72] TheUnited States Court of Appeals for the Federal Circuit upheld the CIT’s decision on August 29, 2025.[73] The rulings werestayed pending appeal, allowing the tariffs to remain in effect.[74]
The Supreme Court consolidatedV.O.S. Selections andLearning Resources into a single case and heard oral arguments in November 2025.[75] A decision is expected in 2026.[76]
Trump was inaugurated for a second term on January 20. Inhis inaugural address, he pledged to "immediately begin the overhaul of our trade system to protect American workers and families."[77]
On February 1, he declared several "national emergencies" regardingfentanyl trafficking and invoked theIEEPA to impose 25% tariffs on most goods from Mexico and Canada and 10% on goods from China.[78] Tariffs onUSMCA-compliant Mexican and Canadian goods were quickly suspended,[79] but the "fentanyl tariff" on Chinese goods was raised to 20% on March 4.[80]
On February 13, Trump announced plans to impose "reciprocal tariffs" on all countries with trade barriers against the US in April, prompting a wave of diplomatic outreach.[81][82] Analysts and foreign governments expressed confusion over the administration's tariff strategies and openness to negotiation.[83][84] Canada alleged that tariffs on its exports were intended to damage its economy and pressureannexation into the US.[85] A Japanese trade official commented, "No matter who I talk to in the US administration, none of them knows what Trump is thinking. We don't even know what Trump wants to negotiate on."[86] When Vietnam offered to eliminate all tariffs on American goods, economic advisorPeter Navarro dismissed the proposal. "This is not a negotiation," he said. "This is a national emergency based on a trade deficit that's gotten out of control."[87]
On March 12, the administration imposed 25% tariffs on imported steel and aluminum products.[88] First-quarter US GDP fell -.05%, but investors attributed the decline to a rush to import goods before tariffs took effect rather than to underlying weakness.[89]
A timeline of the US average effective tariff rate from January 2025 through June 2025, based on calculations by employees of theFederal Reserve Bank of Richmond
On April 2, a day he called "Liberation Day", Trump declared a national emergency regarding the national trade deficit and announced "reciprocal tariffs" on all countries not subject to other sanctions. A minimum 10% tariff on almost all US imports took effect on April 5.[90]
Panic induced by the announcement led to the2025 stock market crash and new country-specific tariffs, planned for April 9, were paused for 90 days.[91][92] However, after a retaliatory spiral, US tariffs on Chinese goods rose to 145% while Chinese tariffs on US goods rose to 125%.[93] Steel and aluminum tariffs, a 25% tariff on automobiles imposed April 3, and other sector-specific duties also remained.[94]Politico estimated that despite the 90 day pause, the remaining tariffs brought the average applied US tariff rate to 27%–the highest level in over a century.[3]
CEOs of major US retailers warned Trump that the trade war with China would lead to visible price increases and product shortages by mid-May.[95] The first cargo ships carrying Chinese goods tariffed at 145% arrived on May 6 with shipments cut in half.[96] Trump reportedly pivoted his focus toward negotiation, sidelining Navarro and promotingScott Bessent as his lead economic advisor.[97][98]
By the end of June, the US had only signed a deal with the UK and a 90-day temporary deal with China.[99] Under terms expiring November 9, as extended, China lowered tariffs on US goods to 10% and resumed exports ofrare-earth elements, while the US lowered its tariff on Chinese goods to 30% (10% baseline + 20% fentanyl) and cutde minimis tariffs to 54%.[100]
On June 4, Trump doubled the tariffs on steel and aluminum imports from 25% to 50%,[103] and on June 12, he expanded them to include household appliances like refrigerators and dishwashers.[104]
Second-quarter US GDP rebounded to 3.8% as imports normalized.[105]
On August 1, theBureau of Labor Statistics released revised data showing a sharp slowdown in hiring, which some attributed to uncertainty caused by tariffs.[106] Trump dismissed the data as "rigged" and fired the BLS Commissioner.[17] Trump also called for the removal ofFederal Reserve ChairmanJerome Powell, who had warned that tariffs could fuel inflation and resisted Trump's calls to cut thefederal funds rate.[107]
Country-specific "reciprocal" tariffs were postponed and changed several times before finally taking effect on August 7.[108][109]
Trump notified foreign governments of adjustments to their "reciprocal" tariff rates in a series of letters.[110] In one letter to Brazil, he threatened a 50% tariff while denouncing charges againstJair Bolsonaro, an ally facing trial for the2022 Brazilian coup plot.[111] On July 30, Trump declared Brazil’s actions a US "national emergency" and imposed an additional 40% tariff on top of a 10% "reciprocal" tariff.[112]
On July 31, the US announced its first "secondary tariff," targetingIndia to penalize its trade withRussia.[113] Beginning August 27, Indian exports faced an extra 25% tariff and a total baseline tariff of 50%.[114][115]
On October 1, new tariffs on large trucks, cabinets, and furniture took effect. A 100% tariff on "any branded or patented" pharmaceutical product also began, unless the companies were building manufacturing plants in the US.[116]
On October 10, President Trump made new threats against China, including an additional 100% tariff starting November 1, in retaliation of China's broadening of export controls onrare earths.[117] China announced retaliatory measures.[118] However, after meeting withCCP General SecretaryXi Jinping in South Korea on October 30, Trump announced the US would cut the "fentanyl tariff" on Chinese goods entering the US from 20% to 10% in return for soybean and other farm product purchases and easier access to rare earths. The US also was expected to suspend an expansion of export controls.[119] The trade deal lowered tariffs on Chinese goods to levels similar to or below those on other countries.[120]
On November 14, Trump exempted a variety of agricultural products from "reciprocal" tariffs or Brazilian tariffs after acknowledging domestic demand and lack of production capacity. Newly exempted products included coffee, tea, tropical fruits, cocoa, spices, bananas, oranges, tomatoes, and beef.[121]
By December 2025, half of all US imports had been exempted from Trump's IEEPA tariffs, although some of the remaining were targeted by section 232 tariffs.[122]
On January 17, Trump threatened tariffs of up to 25% on goods from 8 European countries unless they supported hispurchase of Greenland.[123] On January 21, he retracted the threat after saying he had reached "framework of a future deal" with NATO Secretary-GeneralMark Rutte.[124] Diplomatic talks began soon after.[125]
On February 2, Trump cut tariffs on Indian exports from 50% to 18%. Officials said India had agreed to stop buying Russian oil and would import more agricultural goods from the United States. Indian leaders did not confirm these claims, but thanked Trump for his announcement.[115]
On February 10, House Republicans attempted to pass a resolution to extend the prohibition of the chamber from canceling Trump's tariffs, but failed after three House Republicans voted against it.[126] Republican RepresentativeDon Bacon who voted against the prohibition, wrote "Congress needs to be able to debate on tariffs. Article I of the Constitution places authority over taxes and tariffs with Congress for a reason, but for too long, we have handed that authority to the executive branch."[126] With the prohibition expired, on February 11, six House Republicans crossed party lines to vote to end Trump's tariffs on Canada.[126]
Section 232 of theTrade Expansion Act (TEA) allows the President to modify imports if theSecretary of Commerce conducts an investigation, holds public hearings, and determines that the imports threaten national security.[49][50][51]
On March 12, the US imposed 25% tariffs on all steel and aluminum imports, aiming to strengthen domestic production.[88] On April 2, aluminum tariffs expanded to include empty aluminumdrink cans and canned beer.[127] The measures expanded Trump's first-term steel and aluminum tariffs by eliminating all exemptions and raising the aluminum tariff from 10% to 25%.[50] Trump also mandated that steel be "melted and poured" and aluminum "smelted and cast" in the US to qualify for duty-free status to prevent tariff circumvention.[128]
Tariffs on steel and aluminum imports were increased to 50% on June 4.[103] The UK remained at 25% while it continued to negotiate a trade deal announced the previous month.[129] On June 12, the White House announced steel tariffs would expand to include a range of major household appliances beginning on June 23.[104] The tariffs expanded to include 407 additional products on August 19.[130]
In 2023, the US imported 44% of its aluminum and 26% of its steel.[131] Canada was its largest supplier of both, accounting for more than half of aluminum[132] and two-thirds of primary aluminum imports.[131] The US was the world's largest producer of aluminum through 2000 but accounted for less than 2% of the global supply by 2021, largely due to high electricity costs making itless competitive in the global market.[133]
Trump ordered a probe into copper imports on February 25.[134] On July 9, Trump announced a 50% tariff on copper imports would take effect on August 1.[135] On July 30, 2025, Trump announced that the tariffs would not apply tocathode copper.[136][137]
The U.S. imports nearly half of the copper it uses, with 60% of imports coming fromChile.[135] Chilean state-owned minerCodelco, which sends roughly one-third of its copper exports to the US, was at first expected to lose significant revenue.[129] The aforementioned cathode copper exemption meant that virtually all of Chile's copper exports to the U.S. were exempted.[138]
In January 2025, Trump announced broad tariffs on Canada and Mexico, threatening the highly integrated North American auto supply chain.[139] Due to decades of free trade agreements includingUSMCA, factories in the US, Canada, and Mexico are accustomed to shipping auto parts back and forth multiple times during the manufacturing process.[139] Thethree largest US automakers lobbied for exemptions, warning the tariffs would hurt American companies more than foreign competitors.[140][139] Trump agreed to delay tariffs on USMCA-compliant vehicles.[79] Non-USMCA compliant brands manufacturing in Canada or Mexico, such asBMW, were affected starting March 4.[140][141]
On April 3, 2025, when Trump imposed a new 25% tariff on all imported cars, including those from Mexico and Canada.[129] EconomistArthur Laffer estimated car prices would increase by $4,711, compared to $2,765 if the USMCA exemption remained available.[142]
While the 25% tariff extended to auto parts on May 3, 2025, Trump exempted parts made in Mexico or Canada that were compliant with the USMCA.[143][144] On April 29, 2025, he exempted carmakers that pay a 25% on imported cars from paying other tariffs, such as those on steel and aluminum, and provided a rebate on a proportion of tariffs paid for the next two years.[145] By the end of 2026, he had also reduced auto part tariffs to 10% for UK and 15% for Japan, South Korea, and EU through negotiations.[146]
During his administration, President Joe Biden announced preliminary tariffs of 21.31% to 271.2% on Chinesesolar panel makers with factories in Malaysia, Cambodia, Vietnam, and Thailand to support American manufacturers complaining ofdumping. The Biden administration raised the alarm over China's high investments in factory capacity for clean energy goods.[147] In April 2025, the Commerce Department finalized plans with the lowest tariff at 41%. Products from Cambodia faced duties of 3,521% because its producers did not cooperate with the US investigation.[148]
On September 29, Trump announced 10% tariffs on imports of softwood timber and lumber. He also announced 25% tariffs on kitchen cabinets, bathroom vanities, and upholstered furniture effective October 14.[149]
In September 2025, Trump announced tariffs on large trucks, kitchen cabinets, bathroom vanities, and upholstered furniture, to begin on October 1.[150]
On April 1, 2025, theUnited States Department of Commerce initiated a Section 232 investigation intopharmaceuticals, including "both finished generic and non-generic drug products, medical countermeasures, critical inputs such as active pharmaceutical ingredients and key starting materials, and derivative products of those items."[151]
In September 2025, Trump announced a 100% tariff on "any branded or patented" pharmaceutical product, unless the companies were "breaking ground" or had "under construction" pharmaceutical manufacturing plants in the US.[116] The tariff was expected to have limited impact because most large drug manufacturers already had or were building American facilities.[152] The tariff took effect on October 1, 2025.
On December 1, 2025, the UK secured a 0% tariff on its pharmaceutical and medical technology exports in exchange for a commitment to invest more money into the US. The country also pledged to spend around 25% more in new and effective treatments, the first major increase in over two decades.[153]
On April 1, the Department of Commerce initiated a Section 232 investigation into ""imports ofsemiconductors and semiconductor manufacturing equipment."[154]
On August 6, Trump threatened to impose tariffs of "approximately 100% on chips and semiconductors", but would exempt companies that were building or that had committed to build in the US. Trump referencedApple Inc., which had committed to invest $100 billion over four years into US manufacturing, as a possible exclusion.[155]
On September 29, 2025, Trump threatened to impose a 100% tariff on films made outside of the US; however, no details were provided and the tariff was never implemented.[156][157] Trump justified the tariffs by saying that US film production has increasingly moved to lower-cost locations overseas, resulting in job losses for American industry workers[158][159] and thatUS film industry was dying a "very fast death" due to incentives that other countries offered to draw American filmmakers. He described these incentives as a "national security threat" and the films as "propaganda."[160]
On February 13, 2025, Trump directed his staff to research both monetary and non-monetarytrade barriers imposed by foreign countries against US exports and to develop custom "reciprocal tariffs" to counter and penalize each one.[164] He instructed them to consider factors such as existing tariffs, exchange rates, and trade balances in their analysis. Trump announced that he would unveil his plan on April 2, 2025, a date he referred to as "Liberation Day".[165][166]
On April 2, 2025, Trump declared a national emergency to address what he described as a "large and persistent US trade deficit" and invoked theIEEPA to impose a 10% minimum "reciprocal tariff" on nearly all other countries, effective April 5, 2025.[54] He also announced higher "reciprocal tariffs" for 57 countries and territories that would begin April 9.[90] TheOffice of the United States Trade Representative (USTR) said the "reciprocal tariffs" aimed to "drive bilateral trade deficits to zero".[7] However, even countries with which the US ran a trade surplus, such as Australia, received a tariff of 10%.[167]
The administration's formula for calculating trade barriers simplified to dividing a nation's bilateral trade deficit with the US by the value of its exports to the US. The "reciprocal" tariff rate applied by the US was half of that result.[7] Economic experts criticized this formula for being overly simplistic with little relation to trade barriers,[7][169][170] withThe Economist describing it as "almost as random as taxing you on the number of vowels in your name."[171] Economists cited by the USTR said the White House had misinterpreted and incorrectly applied their research.[8] Anson Soderbery, whose work was cited, said his research was meant to discourage exactly the types of policies the White House was implementing.[8]
Tariffs on certain goods were excluded. These included all articles subject to50 USC 1702(b), such as books and other informational materials, goods separately impacted bySection 232 tariffs, products from Mexico and Canada compliant withUSMCA, except for goods targeted by Section 232 tariffs, imports from countries subject to Column 2 of theHTSUS, which at the time were Cuba, North Korea, Russia, and Belarus.[172] Smartphones, computers and various electronic parts were exempted on April 11.[173] Various agricultural products, including coffee, tea, fruits and beef, were exempted on November 14, 2025.[121]
On the morning of April 9, the prices of U.S. assets including equities, theUS dollar, and bonds declined significantly.[177] That afternoon, Trump announced onTruth Social that "reciprocal" tariffs above 10%, which had gone into effect that morning, would be paused for 90 days for all countries except China. China's minimum tariff rate was increased to 145%,[178] while imports from all other countries were sustained at the 10% rate.[179] Other global tariffs imposed under section 232 also remained in effect.[94]
Trump told reporters, "I thought that people were jumping a little bit out of line... You know, they were getting a little bit yippy, a little bit afraid".[94] He said he had been watching the volatility in the bond market.[180] Treasury SecretaryScott Bessent said the pause was meant to provide time for bespoke negotiations with each country.[181]
Stocks surged within minutes of the pause announcement, with the S&P 500 rising 9.52% for its largest one-day gain since 2008.[182][183] Markets continued to rise in after further policy rollbacks and the S&P 500 set a new all-time high on June 27, 2025.[184] Analysts suggested Trump's threats had lost credibility and thatTrump Always Chickens Out.
The administration announced only three trade agreements by July. While negotiations took place, the tariffs were delayed again to August 7, when they finally took effect after modifications as a result of various trade agreements.[109][185]
Thede minimis exemption waived tariffs on packages valued under $800 to reduce administrative burdens.
On Liberation Day, President Donald Trump also signed Executive Order 14256, which eliminated thede minimis exemption for imports from China andHong Kong,[118][186] and Executive Order 14257, which directed the United States to end thede minimis exemption globally once customs infrastructure was capable of doing so.[187]
On July 4, 2025, Trump signed theOne Big Beautiful Bill Act which included a provision to eliminate thede minimis exemption for all countries beginning on July 1, 2027.[188] A few weeks later, Trump imposed an earlier deadline by signing Executive Order 14324. This order, which cited the IEEPA, ended thede minimis exemption globally on August 29, 2025.[189]
"Secondary tariffs" are a new trade policy introduced by the second Trump administration that resemblesecondary sanctions.[190] Unlike primary tariffs, which directly target a specific country, secondary tariffs penalize third-party countries or entities that trade with the targeted nation.[191]
On August 6, Trump ordered the first "secondary tariff" onIndia.[113] Beginning August 27, 2025, Indian exports to the United States faced an additional 25% tariff intended to penalizeIndia for purchasing Russian oil.[114] Trump announced he would withdraw the tariff in February 2026, saying India had agreed to stop buying Russian oil; Modi lauded Trump, "on behalf of the 1.4 billion people of India for this wonderful announcement".[115] While India is yet to officially comment on its purchase of Russian oil, sources have confirmed India is set to restrict its purchase of Russian oil.[196][197]
Upon imposing the highest U.S. tariffs since the Great Depression (called "Liberation Day" in April 2025), Trump claimed that "jobs and factories will come roaring back". However, manufacturing employment declined every month for the rest of the year.[198]
Though Trump claimed in December 2025 that "inflation has stopped", theconsumer price index (CPI) began increasing in the months following his April 2025 announcement of tariffs.[199]
Trump asserted tariffs on Chinese goods in February and April 2025, igniting a trade war that injected uncertainty as China turned to other sources.[200]
In January 2026, the US dollar reached its lowest point in four years.[201] A lower dollar makes US goods less expensive abroad, but it also makes foreign products more expensive in the US and thus tends to increase inflation.[202]
The US collected $287 billion in customs duties, taxes and fees, up 192% versus the prior year. Roughly a third of that amount ($97.5 billion) was collected in the fourth quarter alone, a 281% year over year increase.[5]
Studies have shown that the tariffs have increased expenses and reduced earnings for companies[203][13][14][15] and have increased costs for households.[13]
Goldman Sachs estimated that as of August 2025, tariffincidence was paid 37% by US consumers, 51% by US businesses, and 9% by foreign exporters. About 3% was attributed to potential tariff evasion.[204]
Jobs growth declined significantly in 2025; employers added 584,000 jobs compared to 2 million in both of the prior two years.[205] The promised growth in manufacturing jobs has not been realized.[16]
The tariffs led topolicy uncertainty and prompted a drop in consumer confidence.[206] More than half of Americans blamed the Trump administration responsible for the rising cost of living[207] and disapproved of the Trump administration increasing tariffs.[208] Corporate bankruptcies in the United States increased to the highest level since 2010.[18][19][20]
The tariffs have led to a sharp reduction in the exports of U.S. crops due to retaliatory tariffs by other countries, particularly China, leading to many bankruptcies of U.S. farms; the impact has been partially mitigated by theTrump administration farmer bailouts.[209]
However, although many economists and economic research bodies predicted slower growth and even a possiblerecession due to the tariffs, U.S. GDP has continued to grow, which partially has been attributed to backtracking by Trump off of the initial high tariff rates.[21][22]
French President Emmanuel Macron holds talks with US President Donald Trump at the White House.
President Donald Trump and Irish Taoiseach Micheál Martin had lunch together following their meeting at the White House.
British Prime Minister Keir Starmer holds talks with US President Donald Trump at the White House.
U.S. President Donald Trump and UK Prime MinisterKeir Starmer present their signed trade deal at the51st G7 summit. While the agreement cut section 232 tariffs such as those on automobiles, the 10% Liberation Day tariffs remained in place.
Trump announced he had reached the first trade deal with the United Kingdom.
US President Donald Trump and British Prime MinisterKeir Starmer held bilateral talks during the G7 Summit.
Brazilian presidentLuiz Inácio Lula da Silva holds talks with US President Donald Trump in Kuala Lumpur, Malaysia.
On May 14, 2025, tariff was reduced to 30% for 90 days pending trade talks. The reduction expired November 9, 2025, as extended but an agreement was reached on November 1, 2025.[220]
35% tariff on most imports from Canada + 10% on Canadian oil and gas
March 4, 2025;
Increased August 1, 2025
Partially in effect
Tariffs on USMCA-compliant goods are delayed indefinitely.[79] 38% of Canadian goods were compliant in 2024,[229] but Canada expected the "vast majority" of goods to be quickly made compliant.[230]
Tariff increased from 25% to 35% on August 1, 2025
Tariffs on USMCA-compliant goods are delayed indefinitely.[79] 50% of Mexican goods were compliant in 2024, but Mexico planned to increase to 85–90%.[232]
25% on $20.8 billion (CA$30 billion) of US goods in effect. A planned expansion to an additional $86 billion (CA$125 billion) worth of US goods was suspended on March 6, 2025.[233]
On April 15, 2025, Canada added a 6-month suspension on tariffs for imports critical to manufacturing, food and beverage processing, healthcare, national security and other objectives.[234]
25% tariffs on $20.6 billion (CA$29.8 billion) of US goods: $8.7 billion (CA$12.6 billion) steel products, $2 billion (CA$3 billion) aluminum products, and $9.9 billion (CA$14.2 billion) misc. goods.
On April 15, 2025, Canada added a 6-month suspension on tariffs for imports critical to manufacturing, food and beverage processing, healthcare, national security and other objectives.[234]
On June 20, 2025, Carney said Canada would increase its counter-tariffs on steel and aluminium products on July 21, 2025, if talks with the US stalled.[237]
25% tariff on non-USMCA compliant vehicles imported into Canada from the US.[240] On April 15, 2025, Canada exempted a quota of cars from automakers that manufacture in Canada.[234]
Originally 34% on all US goods effective April 10, 2025, China raised the baseline to 84% on April 9, 2025, 125% on April 12, 2025, and reduced to 10% from May 14, 2025, for 90 days, then extended to November 9, 2025.[218]
China globally suspended exports of a range of rare earth minerals and magnets critical to auto, defense, aerospace, and semiconductor industries.
Following an initial trade deal with the US on May 12, 2025, China agreed to resume exports. The US alleged China failed to follow through and reiterated the agreement in a trade deal announced June 11, 2025.[249]
25% tariffs on $23.8 billion (€21 billion) of US goods, targeting farm produce and $13.5 billion products from Republican states (reduced from an initial threat of €26 billion to begin April 1, 2025).
EU proposed increasing tariffs to target $100 billion of US goods.[251]
On August 4, 2025, a delay until August 7, 2025, was extended for another 6 months.[252]
Trump directed the Commerce Secretary to initiate a Section 232 investigation into "imports of semiconductors and semiconductor manufacturing equipment".
Processed critical minerals and derivative products
In development
Trump directed the Commerce Secretary to initiate a Section 232 investigation into "imports of processed critical minerals, as well as their derivative products".
Trump directed the Commerce Secretary to initiate a Section 232 investigation into "imports of medium-duty trucks, heavy-duty, trucks, and medium- and heavy-duty truck parts, and their derivative products".
Trump directed the Commerce Secretary to initiate a Section 232 investigation into "imports of commercial aircraft and jet engines, and parts for commercial aircraft and jet engines".
Trump directed the Commerce Secretary to initiate a Section 232 investigation into "Imports of personal protective equipment, medical consumables, and medical equipment, including devices".
^Although the "reciprocal" tariff rate for Brazil remained at 10%, in a separate executive order Trump declared a "national emergency" regarding the "actions of the Government of Brazil" and imposed an additional 40% tariff on some Brazilian exports beginning August 6.
^Although the "reciprocal" tariff rate for India remained at 25%, in a separate executive order Trump imposed an additional 25% tariff effective August 27 as a penalty for India's purchases of Russian oil.[163]
^"The Inaugural Address".The White House. Executive Office of the President. January 20, 2025.Archived from the original on February 22, 2025. RetrievedFebruary 4, 2025.
^Harithas, Barath; Meng, Kyle; Brown, Evan; Mouradian, Catharine (April 3, 2025)."Liberation Day Tariffs Explained".Center for Strategic and International Studies.Archived from the original on January 25, 2026. RetrievedJanuary 31, 2026.
^Lemire, Jonathan; Berman, Russell (April 9, 2025)."The Art of the Retreat".The Atlantic.Archived from the original on April 9, 2025. RetrievedApril 10, 2025.
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