Highest U.S. tariffs at levels last seen in the 1910s during the Trump era
U.S. Tariffs Reach Highest Levels Since the 1910s
In a significant shift in U.S. trade policy, the average tariff rate on U.S. imports has risen to 20.1 percent, according to data released by the World Trade Organization (WTO) and the International Monetary Fund (IMF). This marks the highest level since the early 1910s, a nearly tenfold increase since President Donald Trump took office in January 2017.
The tariff hikes, particularly those initiated in April 2018, have pushed the average tariff rate from 2.4 percent at the time of Trump's inauguration to a peak of 24.8 percent in May 2018. While a trade "truce" later reduced tariffs between the U.S. and China, ongoing unilateral tariff increases on countries such as Brazil, Canada, and imports like semi-finished copper have kept the average tariff rate elevated.
The product category most affected by these tariffs is iron, steel, or cast iron products, with an average tariff of 39.8 percent. In January, the average rate for these products was 6.1 percent. The tariffs on imports from China were the highest, at 40.3 percent, according to data from the U.S. Census Bureau in June.
The emphasis on "reciprocal" tariffs aimed at correcting perceived unfair trade imbalances and protecting U.S. manufacturing by increasing import costs has been a key reason for this increase. The administration's strategy has also involved targeting China and major trading partners, particularly with aggressive tariffs on Chinese goods to address trade deficits and intellectual property concerns.
Furthermore, unilateral tariff applications beyond China have covered nations like Brazil and Canada, and specific imports to bolster domestic industries. Some tariffs have been adjusted through deals with the EU, Japan, and South Korea, but overall tariffs remain elevated due to these new agreements combined with unilateral measures.
Among the trading partners affected by the recent tariff increase are the European Union (EU). The tariff increase under President Trump represents a significant shift in U.S. trade policy, reshaping U.S. trade relationships, increasing protection for domestic industries, and pushing for renegotiations of trade terms with key partners.
[1] World Trade Organization (WTO) data [2] International Monetary Fund (IMF) data [3] U.S. Census Bureau data [4] WTO and IMF report on U.S. tariffs [5] White House announcement of reciprocal tariffs on key trading partners in April 2018
- The European Union, facing increased tariffs under President Trump's administration, has witnessed a significant change in its trade relationship with the United States.
- In the realm of finance, the tariff increase has played a crucial role in reshaping the general-news landscape, with industries such as steel and trade politics being heavily impacted.
