U.S. tariffs - statistics & facts
Taxes imposed on imported or exported goods, otherwise called tariffs, have been central to U.S. trade policy since the Constitution came into effect in 1789. While originally intended to protect domestic industries and generate revenue, today they are often employed as economic and political tools to influence trade relationships. In recent years, U.S. tariffs have held particular significance in trade disputes, primarily with China. Under the first Trump administration, the U.S. imposed tariffs on billions of dollars' worth of Chinese goods, prompting retaliatory tariffs on American products. By the end of 2024, American importers had paid over 260 billion U.S. dollars in trade war duties.
In anticipation of the tariffs scheduled to take effect on April 5, the Dow Jones Industrial Average plunged by 1,679 points, or a decline of 4 percent, while the S&P 500 dropped 4.8 percent, marking its worst single-day performance since 2020. The sell-off erased over three trillion U.S. dollars in market value within days, eclipsing several historic economic crises. While U.S. markets sustained the heaviest effects, Trump’s escalating trade war lurched global financial markets into the steepest downturn since the COVID-19 pandemic, with global market capitalization losing ten trillion U.S. dollars, translating into over half of the entire GDP of the EU.
As it stands, many essential imports, such as medical equipment, raw materials, and consumer goods, enter the U.S. tariff-free or at very low rates. Trump’s proposed tariffs on all imports would result in a sharp increase in the overall tariff burden due to previously duty-free goods being taxed and would have serious repercussions on businesses, consumer prices, American industries and supply chains. For example, tariffs on steel and aluminum can raise production costs for U.S. manufacturers, which could then lead to increased prices for automobiles, appliances, and construction projects. In anticipation of these potential price increases, over a quarter of Americans planned to make certain purchases in 2025.
Trump's tariffs: economic impact and public reaction
In the early months of his presidency, President Trump unveiled an aggressive trade agenda centered on sweeping tariffs aimed at reshaping U.S. trade relationships. His proposals included a universal 10 percent baseline tariff on all imports, projected to generate an estimated 2.95 trillion U.S. dollars in revenue. However, in early April, President Trump made an executive order to implement new, widespread tariffs across more than 100 countries in what he called “Liberation Day”. In addition to the baseline tariffs, Trump also announced specific tariffs on a number of important trading partners, such as the European Union, China, and Vietnam, which account for over 40 percent of all U.S. imports. Shortly after, Trump announced a 90-day suspension of the newly introduced tariffs. However, the heightened tariffs on Chinese goods remained in place, resulting in China imposing counter-tariffs on a range of American exports, including coal, liquefied natural gas, machinery, and large motor vehicles.In anticipation of the tariffs scheduled to take effect on April 5, the Dow Jones Industrial Average plunged by 1,679 points, or a decline of 4 percent, while the S&P 500 dropped 4.8 percent, marking its worst single-day performance since 2020. The sell-off erased over three trillion U.S. dollars in market value within days, eclipsing several historic economic crises. While U.S. markets sustained the heaviest effects, Trump’s escalating trade war lurched global financial markets into the steepest downturn since the COVID-19 pandemic, with global market capitalization losing ten trillion U.S. dollars, translating into over half of the entire GDP of the EU.
As it stands, many essential imports, such as medical equipment, raw materials, and consumer goods, enter the U.S. tariff-free or at very low rates. Trump’s proposed tariffs on all imports would result in a sharp increase in the overall tariff burden due to previously duty-free goods being taxed and would have serious repercussions on businesses, consumer prices, American industries and supply chains. For example, tariffs on steel and aluminum can raise production costs for U.S. manufacturers, which could then lead to increased prices for automobiles, appliances, and construction projects. In anticipation of these potential price increases, over a quarter of Americans planned to make certain purchases in 2025.
