Summary
Since Donald Trump announced new import taxes known as tariffs, the average tariff rate has risen significantly. These tariffs have increased US government revenue but also led to a larger trade deficit, as US companies rushed to import goods before the tariffs took effect. The tariffs specifically targeting China have reduced its exports to the US, though China has increased its trade with other countries.
Key Facts
- Donald Trump announced new import taxes or tariffs on April 2.
- The average US tariff rate rose to 18.2% by July 2025, up from 2.4% in 2024.
- US government revenue from tariffs reached $28 billion in June 2025, triple the amount from 2024.
- The tariffs are expected to reduce US government borrowing by $2.5 trillion by 2035.
- Despite tariff goals, the US goods trade deficit was $86 billion in June 2025, after a record $162 billion earlier that year.
- Tariffs on Chinese imports have dropped to 30%, but Chinese exports to the US fell by 11% in early 2025 compared to 2024.
- China's exports to other regions, like the EU and India, have increased.
