Tariffs in the second Trump administration
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During his second term as President of the United States, Donald Trump enacted a series of steep tariffs affecting nearly 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, negotiations, and the invalidation of certain tariffs by the Supreme Court of the United States, the overall average effective tariff rate was 13.7% in February 2026.[4] The items most affected by the tariffs are metals, electrical equipment, vehicles, and computers.[4]
Although the Constitution of the United States grants Congress the sole authority to levy taxes, including tariffs, Congress has passed laws allowing the President to impose tariffs unilaterally for national security reasons.[5]
Under Section 232 of the 1962 Trade Expansion Act, Trump raised tariffs on cars, steel, aluminum, copper, and related derivative products as high as 50%. New tariffs on large-scale batteries, cast iron and iron fittings, plastic piping, industrial chemicals and power grid and telecom equipment are under consideration.[6]
In April 2025, Trump also claimed unprecedented authority under the International Emergency Economic Powers Act (IEEPA) to impose Liberation Day tariffs of at least 10% on goods from nearly all countries. Trump also used the law to impose punitive tariffs against several countries and to order the early closure of the de minimis exemption. In February 2026, the Supreme Court ruled the IEEPA tariffs illegal in the case Learning Resources, Inc. v. Trump.[7] The government estimated that it collected $166 billion from more than 330,000 businesses in IEEPA tariffs that the Supreme Court found unconstitutional and U.S. customs is working on a system to process refunds of these tariffs.[8]
After the decision of the Supreme Court, Trump announced a global tariff of 10% under Section 122 of the Trade Act of 1974, to remain in effect for 150 days, until July 24, 2026. He then threatened to increase the rate to 15% and also issued an executive order to maintain the closure of the de minimis exemption under the IEEPA.[9][10] Several states, led by New York, then sued to block these tariffs.[11]
Trump also used Section 301 of the Trade Act of 1974 to impose tariffs on Nicaragua starting in 2027 and has threatened to use the law to impose many other country-specific tariffs.
The Trump administration argues that its tariffs will promote domestic manufacturing, protect national security, and substitute for federal income taxes. The administration views trade deficits as inherently harmful, a stance economists criticized as a flawed understanding of trade.[12][13][14][15] Studies have shown that the tariffs have increased expenses and reduced earnings for companies,[16][17][18][19] and have increased costs for households.[17] The promised growth in manufacturing jobs has not been realized.[20] Corporate bankruptcies increased to the highest level since 2010.[21][22][23] However, although many economists predicted slower growth and even a possible recession due to the tariffs, US GDP has continued to grow. This was partially attributed to Trump's backtracking on the initial high tariff rates.[24][25] There has also been no definitive indication of a significant aggregate effect on the labor market so far; however, industries most exposed to tariffs show some signs of weakness relative to the pre-2025 trend.[26]
Background
During the 1990s and 2000s, global trade expanded as improvements in communications and shipping technology made offshoring more feasible and trade deals reduced tariffs and other barriers to commerce.[27][28] 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.[29][30]
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.[31] The surge in outsourcing, alongside advancements in automation, led to localized depressions in many manufacturing-dependent communities.[30][31] Laid off manufacturing workers typically did not relocate or transition into new industries, even after their communities rebounded, and instead remained unemployed long term.[30] Research indicates that these regions became more politically polarized and that their legislators increasingly supported protectionist policies.[32]
During the 2000s, public opinion surveys and political rhetoric began to reflect growing skepticism toward international economic integration, a trend that intensified following the 2008 financial crisis.[32] In 2008, Barack Obama blamed NAFTA 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."[33][34]
According to Jeffry 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 the 2016 presidential election marked the victory of an economic nationalism that had long been far from the mainstream of American politics."[32] 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’s protectionist orientation in the early 20th century.[32]
First Trump administration
In 2018, Trump imposed tariffs on steel and aluminum imports.[35] He also initiated the China–United States trade war, which subjected 60% of US-China trade to 20% tariffs.[36] 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.[37]
In May 2019, Trump used tariff threats of up to 25% on Mexico to negotiate an expansion of his "Remain in Mexico" policy and the deployment of Mexican soldiers to help control illegal immigration.[38] The Mexican government, led by Andrés Manuel López Obrador, deployed nearly 15,000 troops to the Mexico–US border and 6,500 troops to the Guatemala–Mexico border.[39][40]
In 2020, the US, Mexico and Canada renegotiated the North American Free Trade Agreement (NAFTA) as the US–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.[41][42] He withdrew the tariff a month later, three hours before the 29th Canadian Ministry planned to retaliate.[43]
2024 presidential campaign
During his 2024 presidential campaign, Trump pledged 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 on John Deere.[44] He proposed using tariffs to achieve a wide range of goals, including preventing war, reducing trade deficits, improving border security, and subsidizing childcare.[45]
In April 2025, Trump suggested tariff revenues could eventually replace income taxes, at least for those making less than $200,000 per year,[46] although others estimated it would cover less than 25% of that cost[47] and less if import volumes fell.[48] The Tax Foundation deemed the idea "mathematically impossible".[49]
Shortly after the 2024 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".[50]
In December 2024, Trump appointed tariff hard liner Peter Navarro as his Senior Counselor for Trade and Manufacturing.[51][52] Stephen Miran, another tariff hard liner, was appointed chair of the Council of Economic Advisers.[53]
Section 232 tariffs
Section 232 of the Trade Expansion Act (TEA) allows the President to modify imports if the Secretary of Commerce conducts an investigation, holds public hearings, and determines that the imports threaten national security.[5][54][55]
Steel and aluminum
In March 2025, the US imposed 25% tariffs on all steel and aluminum imports, including and derivative products, aiming to strengthen domestic production.[56] In April 2025, aluminum tariffs were expanded to include empty aluminum drink cans and canned beer.[57] The measures expanded Trump's first-term steel and aluminum tariffs by eliminating all exemptions and raising the aluminum tariff from 10% to 25%.[54] 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.[58]
Tariffs on steel and aluminum imports were increased to 50% in June 2025.[59] The UK remained at 25% while it continued to negotiate a trade deal announced the previous month.[60] On June 12, the White House announced steel tariffs would expand to include a range of major household appliances beginning on June 23.[61] The tariffs were expanded to include 407 additional products in August 2025.[62]
In 2023, the US imported 44% of its aluminum and 26% of its steel.[63] Canada was its largest supplier of both, accounting for more than half of aluminum[64] and two-thirds of primary aluminum imports.[63] 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 it less competitive in the global market.[65]
Copper
Trump ordered a probe into copper imports in February 2025.[66] In July 2025, Trump announced a 50% tariff on copper imports, effective the following month.[67] On July 30, 2025, Trump announced that the tariffs would not apply to cathode copper.[68][69] Most of the copper imported to the US is cathode copper from Chile.[67][60][70]
Automobiles and auto parts
In January 2025, Trump announced broad tariffs on Canada and Mexico, threatening the highly integrated North American auto supply chain.[71] Due to decades of free trade agreements including USMCA, factories in the US, Canada, and Mexico are accustomed to shipping auto parts back and forth multiple times during the manufacturing process.[71] The three largest US automakers lobbied for exemptions, warning the tariffs would hurt American companies more than foreign competitors.[72][71] Trump agreed to delay tariffs on USMCA-compliant vehicles.[73] Non-USMCA compliant brands manufacturing in Canada or Mexico, such as BMW, were affected starting March 4.[72][74]
In April 2025, Trump imposed a new 25% tariff on all imported cars, including those from Mexico and Canada.[60] Economist Arthur Laffer estimated car prices would increase by $4,711, compared to $2,765 if the USMCA exemption remained available.[75]
While the 25% tariff extended to auto parts in May 2025, Trump exempted parts made in Mexico or Canada that were compliant with the USMCA.[76][77] In April 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.[78] He later reduced auto part tariffs to 10% for UK and 15% for Japan, South Korea, and EU through negotiations.[79]
Solar panels from Southeast Asian countries
In April 2025, in support of American manufacturers complaining of dumping and subsidies, the Commerce Department furthered plans first issued by the Biden Administration to tariff Chinese solar panel makers with factories in Malaysia, Cambodia, Vietnam, and Thailand. Proposed tariff rates ranged from 41% to 3,521% in the case of Cambodia because its producers did not cooperate with the US investigation.[80]
In February 2026, the Commerce Department announced tariffs on solar cells and panels imported by companies in India, Indonesia and Laos to counteract subsidies offered by those countries.[81]
Lumber and furniture
In September 2025, 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.[82]
Also in September 2025, Trump announced tariffs on large trucks, kitchen cabinets, bathroom vanities, and upholstered furniture, to begin on October 1.[83]
Pharmaceuticals
In April 2025, the United States Department of Commerce initiated a Section 232 investigation into pharmaceuticals, 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."[84]
In September 2025, Trump announced, effective on October 1, 2025, 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.[85] The tariff was expected to have limited impact because most large drug manufacturers already had or were building American facilities.[86] Trump also agreed to honor previously negotiated trade deals that capped pharmaceutical tariffs at 15%. Following the announcement, several large branded pharmaceutical companies announced or accelerated U.S. manufacturing investments to qualify for tariff exemptions tied to domestic production.[87]
In December 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.[88]
Semiconductors
In April 2025, the Department of Commerce initiated a Section 232 investigation into ""imports of semiconductors and semiconductor manufacturing equipment."[89]
In January 2026, Trump issued 25% tariffs on a narrow range of semiconductor imports, primarily advanced computing chips, including the Nvidia H200 and the AMD MI325X. However, the tariff does not apply to chips imported to support the buildout of the U.S. technology supply chain or to bolster domestic manufacturing capacity for derivatives of semiconductors. Semiconductors used for data centers, research and development, and non-data center consumer applications are exempted.[90]
Country-specific tariffs implemented under Section 301 of the Trade Act of 1974
Trump imposed tariffs under Section 301 of the Trade Act of 1974, which allows the President to modify imports if the Secretary of Commerce conducts an investigation and holds public hearings.[91]
Under Section 301 of the Trade Act of 1974, the U.S. imposed phased-in tariffs on imports from Nicaragua that do not qualify under the Dominican Republic–Central America Free Trade Agreement (CAFTA-DR). The tariff rate is 10% in 2027 and 15% in 2028. The tariffs "address Nicaragua's acts, policies, and practices related to abuses of labor rights, abuses of human rights and fundamental freedoms, and dismantling of the rule of law".[92][93]
Country-specific tariffs implemented under IEEPA
Trump invoked unprecedented powers under the National Emergencies Act (NEA) and the International Emergency Economic Powers Act (IEEPA) by declaring multiple "national emergencies" related to border security, energy, and trade deficits.[94][95] The administration claimed that 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.[96] While the IEEPA had been used to enact economic 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."[94]
On February 13, 2025, Trump directed his staff to research both monetary and non-monetary trade barriers imposed by foreign countries against US exports and to develop custom "reciprocal tariffs" to counter and penalize each one.[97] He instructed them to consider factors such as existing tariffs, exchange rates, and trade balances in their analysis.[98][99]
On April 2, 2025, a day he called "Liberation Day", Trump declared a national emergency to address what he described as a "large and persistent US trade deficit" and invoked the IEEPA to impose a 10% minimum "reciprocal tariff" on nearly all other countries, effective April 5, 2025.[95] He also announced higher "reciprocal tariffs" for 57 countries and territories that would begin April 9.[100] Tariffs on certain goods were excluded.
The "reciprocal" tariff announcement led to the 2025 stock market crash. Bond prices dropped and interest rates soared in a scenario called bond vigilantism.[101]
After prices of U.S. assets including equities, the US dollar, and bonds declined significantly on the morning of April 9, Trump announced on Truth Social that "reciprocal" tariffs above 10%, which had gone into effect that morning, would be paused for 90 days for all countries except China.[102] China's minimum tariff rate was increased to 145%,[103] while imports from all other countries were sustained at the 10% rate.[104] Other global tariffs imposed under section 232 also remained in effect.[105]
Stocks surged within minutes of the pause announcement, with the S&P 500 rising 9.52% for its largest one-day gain since 2008.[106][107]
To terminate a national emergency under the NEA, a member of Congress may file a privileged resolution requiring their chamber to vote on the topic within 15 days. In May 2025, Democratic representatives introduced resolutions to end several of Trump's national emergencies justifying tariffs, but these efforts were blocked by the Republican congressional majority.[108][109][110][111][112] JD Vance cast a tie-breaking vote in the Senate to uphold the emergency underpinning the Liberation Day tariffs.[108]
In May 2025, everal countries initiated disputes regarding Trump's tariffs with the World Trade Organization (WTO), a regulator of international trade.[113][114] However, the United States has de facto paralyzed the WTO since 2019 by blocking new appointments to its Appellate Body. Without a functioning Appellate Body, no final rulings can be made.[115] In March 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.[116]
Markets continued to rise in after further policy rollbacks and the S&P 500 set a new all-time high on June 27, 2025.[117] Analysts suggested Trump's threats had lost credibility and that Trump 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.[118][119]
Legal challenges to IEEPA tariffs
At least seven cases were filed in American federal courts challenging Trump's authority to impose tariffs under IEEPA.[120][121] 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.[122][123][124] Several complaints invoke the nondelegation 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.[122][123][124]
In May 2025, the United States Court of International Trade (CIT) issued a summary judgement for V.O.S. Selections, Inc. v. United States and Oregon v. Department of Homeland Security and ruled Trump had exceeded his authority under the IEEPA.[125][126] 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."[127] In Learning Resources, Inc. v. Trump, a Washington D.C. district court went further by holding that the IEEPA does not authorize tariffs at all.[127] The United States Court of Appeals for the Federal Circuit upheld the CIT’s decision in August 2025.[128] The rulings were stayed pending appeal, allowing the tariffs to temporarily remain in effect until the Supreme Court issued a final decision.[129]
The Supreme Court consolidated V.O.S. Selections and Learning Resources into a single case and heard oral arguments in November 2025.[130] In February 2026, the Supreme Court, in a 6-3 ruling, affirmed the decision of the appeals court that Trump's use of emergency powers to enact the tariffs under IEEPA was not legal.[131] The government estimated that it collected $166 billion from more than 330,000 businesses in IEEPA tariffs that the Supreme Court found unconstitutional and U.S. customs is working on a system to process refunds of these tariffs.[8]
In February 2026, the country-specific tariffs implemented under IEEPA were declared illegal by the Supreme Court of the United States. The government estimated that it collected $166 billion from more than 330,000 businesses in IEEPA tariffs that the Supreme Court found unconstitutional and U.S. customs is working on a system to process refunds of these tariffs.[8]
Closure of the de minimis exemption
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The de 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 the de minimis exemption for imports from China and Hong Kong,[132][133] and Executive Order 14257, which directed the United States to end the de minimis exemption globally once customs infrastructure was capable of doing so.[134]
On July 4, 2025, Trump signed the One Big Beautiful Bill Act which included a provision to eliminate the de minimis exemption for all countries beginning on July 1, 2027.[135] A few weeks later, Trump imposed an earlier deadline by signing Executive Order 14324. This order, which cited the IEEPA, ended the de minimis exemption globally on August 29, 2025.[136]
Although the Supreme Court invalidated Trump's authority to impose other tariffs under the IEEPA on February 20, 2026, Trump issued an executive order arguing the ruling did not apply to the de minimis exemption and stating it would remain closed.[9]
Secondary tariffs
"Secondary tariffs" are a new trade policy introduced by the second Trump administration that resemble secondary sanctions.[137] Unlike primary tariffs, which directly target a specific country, secondary tariffs penalize third-party countries or entities that trade with the targeted nation.[138]
In March 2025, following actions such as the March 2025 Venezuelan deportations, Trump signed an executive order imposing a 25% tariff on nations that purchase oil from Venezuela at the Secretary of State's discretion.[139] He subsequently threatened secondary tariffs on countries purchasing Russian oil[140][141] and on countries that trade with Iran.[142]
In August 2025, Trump ordered the first "secondary tariff" on India.[143] Indian exports to the United States faced an additional 25% tariff intended to penalize India for purchasing Russian oil.[144] Trump withdrew the tariff in February 2026 after several Indian oil companies agreed to stop buying Russian oil unless absolutely necessary or unless related to the fulfillment of previously agreed to contracts.[145][146][147]
Timeline of key events and negotiations
January–March 2025
Trump was inaugurated for a second term on January 20, 2025. In his inaugural address, he pledged to "immediately begin the overhaul of our trade system to protect American workers and families."[148]
On February 1, 2025, he declared several "national emergencies" regarding fentanyl trafficking and invoked the IEEPA to impose 25% tariffs on most goods from Mexico and Canada and 10% on goods from China.[149] Tariffs on USMCA-compliant Mexican and Canadian goods were quickly suspended,[73] but the "fentanyl tariff" on Chinese goods was raised to 20% on March 4.[150]
On February 13, 2025, Trump announced plans to impose "reciprocal tariffs" on all countries with trade barriers against the US in April, prompting a wave of diplomatic outreach.[151][152] Analysts and foreign governments expressed confusion over the administration's tariff strategies and openness to negotiation.[153][154] Canada alleged that tariffs on its exports were intended to damage its economy and pressure annexation into the US.[155] 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."[156] When Vietnam offered to eliminate all tariffs on American goods, economic advisor Peter 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."[157]
On March 12, 2025, the administration imposed 25% tariffs on imported steel and aluminum products.[56] 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.[158]
April–June 2025
On April 2, 2025, 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.[100]
Panic induced by the announcement led to the 2025 stock market crash and new country-specific tariffs, planned for April 9, were paused for 90 days.[159][160] However, after a retaliatory spiral, US tariffs on Chinese goods rose to 145% while Chinese tariffs on US goods rose to 125%.[161] Steel and aluminum tariffs, a 25% tariff on automobiles imposed April 3, and other sector-specific duties also remained.[105] 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.[162] The first cargo ships carrying Chinese goods tariffed at 145% arrived on May 6 with shipments cut in half.[163] Trump reportedly pivoted his focus toward negotiation, sidelining Navarro and promoting Scott Bessent as his lead economic advisor.[164][165]
By the end of June 2025, the US had only signed a deal with the UK and a 90-day temporary deal with China.[166] Under terms expiring November 9, as extended, China lowered tariffs on US goods to 10% and resumed exports of rare-earth elements, while the US lowered its tariff on Chinese goods to 30% (10% baseline + 20% fentanyl) and cut de minimis tariffs to 54%.[167]
Trump walked back some of his tariffs that preceded the 2025 stock market crash, inspiring the phrase "Trump Always Chickens Out." The stock market subsequently reached new highs.[168][169]
On June 4, 2025, Trump doubled the tariffs on steel and aluminum imports from 25% to 50%,[59] and on June 12, he expanded them to include household appliances like refrigerators and dishwashers.[61]
US GDP rebounded to 3.8% in the second quarter of 2025 as imports normalized.[170]
July–September 2025
On August 1, 2025, the Bureau of Labor Statistics released revised data showing a sharp slowdown in hiring, which some attributed to policy uncertainty caused by tariffs.[171] Trump dismissed the data as "rigged" and fired the BLS Commissioner.[172] Trump also called for the removal of Federal Reserve Chairman Jerome Powell, who had warned that tariffs could fuel inflation and resisted Trump's calls to cut the federal funds rate.[173]
Country-specific Liberation Day tariffs were postponed and changed several times before finally taking effect on August 7.[174][118]
Trump notified foreign governments of adjustments to their Liberation Day tariffs rates in a series of letters.[175] In one letter to Brazil, he threatened a 50% tariff while denouncing charges against Jair Bolsonaro, an ally facing trial for the 2022 Brazilian coup plot.[176] 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.[177]
On July 31, the US announced its first "secondary tariff," targeting India to penalize its trade with Russia.[143] Beginning August 27, Indian exports faced an extra 25% tariff and a total baseline tariff of 50%.[144][145]
October–December 2025
On October 1, 2025, 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.[85]
On October 10, 2025, Trump made new threats against China, including an additional 100% tariff starting November 1, in retaliation of China's broadening of export controls on rare earths.[178] China announced retaliatory measures.[132] However, after meeting with CCP General Secretary Xi 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.[179] The trade deal lowered tariffs on Chinese goods to levels similar to or below those on other countries.[180]
On November 14, 2025, 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.[181]
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.[182]
January–March 2026
On January 17, 2026, Trump threatened tariffs of up to 25% on goods from 8 European countries as part of the Greenland Crisis.[183] On January 21, 2026, he retracted the threat after saying he had reached "framework of a future deal" with NATO Secretary-General Mark Rutte.[184] Diplomatic talks began soon after.[185]
On February 2, 2026, Trump cut tariffs on Indian exports from 50% to 18% after several Indian oil companies agreed to stop buying Russian oil unless absolutely necessary or unless related to the fulfillment of previously agreed to contracts.[145][146]
On February 10, 2026, 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.[186] Republican Representative Don 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."[186] With the prohibition expired, on February 11, six House Republicans crossed party lines to vote to end Trump's tariffs on Canada.[186]
On February 20, 2026, the Supreme Court of the United States ruled in Learning Resources, Inc. v. Trump that the IEEPA does not grant the President authority to impose tariffs.[187] The government estimated that it collected $166 billion from more than 330,000 businesses in IEEPA tariffs that the Supreme Court found unconstitutional and U.S. customs is working on a system to process refunds of these tariffs.[8]
After the decision of the Supreme Court, Trump announced a universal 10% tariff, to remain in effect for 150 days, , until July 24, 2026, under Section 122 of the Trade Act of 1974 to replace the invalidated tariffs.[188] He also threatened to increase the tariff to 15%.[189][10] Several states, led by New York, then sued to block these tariffs.[11]
Existing exemptions were maintained.[189] Trump also issued an executive order to maintain the closure of the de minimis exemption under the IEEPA.[9]
Impacts
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Studies have shown that the tariffs have increased expenses and reduced earnings for companies[195][17][18][19] and have increased costs for households.[17]
Goldman Sachs estimated that as of August 2025, tariff incidence was paid 37% by US consumers, 51% by US businesses, and 9% by foreign exporters. About 3% was attributed to potential tariff evasion.[196] A study by the Federal Reserve Bank of New York estimated that in the first 11 months of 2025, between 6% and 14% of tariff costs were paid by foreign exporters.[197] Studies by the National Bureau of Economic Research and the Kiel Institute estimated that US consumers and businesses pay a total of 94% and 96% of the tariffs, respectively.[197]
The promised growth in manufacturing jobs has not been realized.[20]
The tariffs led to policy uncertainty and prompted a drop in consumer confidence.[198] More than half of Americans blamed the Trump administration responsible for the rising cost of living[199] and disapproved of the Trump administration increasing tariffs.[200] Corporate bankruptcies in the United States increased to the highest level since 2010.[21][22][23]
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 the Trump administration farmer bailouts.[201]
However, although many economists and economic research bodies predicted slower growth and even a possible recession 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.[24][25] There has also been no definitive indication of a significant aggregate effect on the labor market so far; however, industries most exposed to tariffs show some signs of weakness relative to the pre-2025 trend.[26]
Gallery
Canadian Prime Minister Mark Carney holds talks with Trump at the White House.
Trump welcoming Mark Carney to the White House in May 2025
China, South Korea, and Japan agreed to strengthen free trade after Trump tariffs on March 30.
Chinese leader Xi Jinping holds talks with Trump in Busan, South Korea.
Indian Prime Minister Narendra Modi holds talks with Trump at the White House.
Israeli prime minister Benjamin Netanyahu holds talks with Trump at the White House.
Japanese Prime Minister Shigeru Ishiba holds talks with Trump at the White House.
Members of the Second Ishiba Cabinet convene to discuss US tariff policy.
Japanese Minister of State for Economic and Fiscal Policy Ryosei Akazawa holds talks with Trump at the White House.
Filipino President Bongbong Marcos holds talks with Trump at the White House.
South Korean President Lee Jae-myung holds talks with US President Donald Trump at the White House.
Trump announced that TSMC is set to invest in the US.
Representatives from the Executive Yuan and legislative caucuses across party lines convene to discuss US tariff policy.
South Africa President Cyril Ramaphosa holds talks with US President Donald Trump at the White House.
El Salvadoran president Nayib Bukele holds talks with US President Donald Trump at the White House.
Russian president Vladimir Putin holds talks with US President Donald Trump in Anchorage, Alaska.
Ursula von der Leyen holds talks with US President Donald Trump.
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 Minister Keir Starmer present their signed trade deal at the 51st 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 Minister Keir Starmer held bilateral talks during the G7 Summit.
Brazilian president Luiz Inácio Lula da Silva holds talks with US President Donald Trump in Kuala Lumpur, Malaysia.
Trump with the president of Gabon
Trump with the president of Mauritania
Trump with the president of Guinea-Bissau
Trump with the president of Liberia
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Summary table
| Enacted US tariffs | ||||
|---|---|---|---|---|
| Section 232 tariffs | ||||
| Tariff | Effective | Status | Notes | Ref. |
| 50% tariff on steel[202] and aluminum[203] products | March 12, 2025;
Increased June 4, 2025 |
In effect |
|
[64] |
| 50% tariff on copper | August 1, 2025 | In effect |
|
[67][205] |
| 25% tariff on automobiles and auto parts | April 3, 2025 | In effect | [206] | |
| 100% tariff on brand name pharmaceuticals | October 1, 2025 | Partially in effect |
|
[86] |
| 10% tariff on timber and lumber | October 14, 2025 | In effect | [207] | |
| 30% tariff on upholstered wooden products and 50% on cabinets and vanities | October 14, 2025; Increased January 1, 2026 | In effect |
|
[207] |
| 25% tariff on trucks and 10% tariff on busses | November 1, 2025 | In effect | [208] | |
| IEEPA tariffs | ||||
| Global de minimis exemption closure | August 29, 2025 | Struck down | See § De minimis exemption closure | [209] |
| 10% universal "reciprocal tariff" on all imported goods | April 5, 2025 | Struck down |
|
[100] |
| Country-specific "reciprocal tariffs" | August 7, 2025 | Struck down |
|
[151] |
| 30% tariff on all Chinese goods | May 14, 2025 | Struck down | Total tariff of 30% includes:
|
[212] |
| De minimis exemption closure for China and Hong Kong | May 3, 2025; Decreased May 12, 2025 | Struck down | See § De minimis exemption closure. Tariff cut to 54% from 120% on May 14.[213][214] | [134] |
| 145% tariff on all imports from China | February 4, 2025; Increased March 4, 2025; Increased April 9, 2025; Paused May 14, 2025 | Paused[213] | Total tariff of 145% includes:
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.[212] |
[216][217][218] |
| 40% tariff on imports from Brazil | August 6, 2025 | Struck down | Imposed by Executive Order 14323. | [219] |
| 25% secondary tariff on imports from India | August 27, 2025 | Struck down |
|
[220] |
| 35% tariff on most imports from Canada + 10% on Canadian oil and gas | March 4, 2025;
Increased August 1, 2025 |
Struck down | [223] | |
| 25% tariff on all imports from Mexico | March 4, 2025 | Struck down | [223] | |
| 25% tariff on imports from countries importing Venezuelan oil | April 2, 2025 | Announced | The Secretary of State may impose a 25% tariff on goods from any country that imports Venezuelan oil, directly or indirectly, after April 2, 2025. | [139] |
| Foreign retaliation | ||||
| Country/Region | Effective | Status | Notes | Ref. |
| Canada | March 4, 2025 | Partially in effect |
|
[227][228] |
| Canada | March 13, 2025 | Partially in effect |
|
[230] |
| Canada | April 9, 2025 | In effect[231] | 25% tariff on non-USMCA compliant vehicles imported into Canada from the US.[232] On April 15, 2025, Canada exempted a quota of cars from automakers that manufacture in Canada.[226] | [233][232] |
| China | February 4, 2025 | In effect | 15% tariff on coals and liquefied natural gas, 10% on oil and agricultural machines, and investigations on US companies. | [234] |
| China | March 10, 2025 | In effect | 10–15% tariffs on US meat and agricultural products, suspension of US lumber imports, revocation of soybean import licenses for 3 US firms.[235] | [236] |
| China | April 10, 2025 | In effect |
|
[237][238][239] A new trade deal was announced on November 1.[240] |
| China | April 4, 2025 | Paused |
|
[242] |
| European Union | April 15, 2025 | Paused |
|
[245] |
| Proposed US tariffs | ||||
| Digital Service Taxes (DSTs) | In development | Trump directed USTR to initiate a Section 301 investigation into DSTs, particularly against France, Austria, Italy, Spain, Turkey, and the UK | [246] | |
| Semiconductors | In development | Trump directed the Commerce Secretary to initiate a Section 232 investigation into "imports of semiconductors and semiconductor manufacturing equipment". | [89] | |
| 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". | [247] | |
| Trucks and truck parts | In development | 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". | [248] | |
| Commercial aircraft and jet engines and parts | In development | 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". | [249] | |
| Personal protective equipment | In development | Trump directed the Commerce Secretary to initiate a Section 232 investigation into "Imports of personal protective equipment, medical consumables, and medical equipment, including devices". | [250] | |
See also
- Timeline of the 2025–2026 United States trade war with Canada
- 2025 United States boycott – International consumer movement
- Chicken tax – American tariff on light trucks
- Foreign policy of the second Trump administration
- Hands Off protests – 2025 protests against Donald Trump
- List of the largest trading partners of the United States
- Movements for the annexation of Canada to the United States § Proposals to annex Canada by President Donald Trump
- Tariffs in the first Trump administration
- Trump Always Chickens Out – Phrase describing tariff policies of the Trump administration
- U.S. economic performance by presidential party – United States economy by president since World War II
- Trade war – Economic conflict using tariffs or other trade barriers
- Economic sanctions – Financial penalties applied by nations
- Dedollarisation – Replacing US dollar for other currencies
- BRICS – Intergovernmental organization
- Mercantilism – Economic policy emphasizing exports