Tariffs in the second Trump administration

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. From January to April 2025, the average applied US tariff rate rose from 2.5% to an estimated 27%—the highest level in over a century. After changes and negotiations, the rate was estimated at 17.9% as of September 2025. By September 2025, US tariff revenue exceeded $30 billion per month, compared to under $10 billion per month in 2024.

Under Section 232 of the 1962 Trade Expansion Act, Trump raised steel, aluminum, and copper tariffs to 50% and introduced a 25% tariff on imported cars from most countries. New tariffs on pharmaceuticals and semiconductors, were also implemented, with exceptions for companies manufacturing in the U.S.

Trump also claimed unprecedented tariff authority under the International 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 due to the 2025 stock market crash, they were implemented on August 7. The de minimis exemption, scheduled to end in July 2027, was closed on August 29, 2025 under IEEPA; previously, packages valued below $800 were exempt from tariffs. Sweeping use of the IEEPA sparked a trade war with Canada and Mexico and escalated the China–United States trade war.

Federal courts have ruled that the tariffs imposed under the IEEPA are illegal; however, they remained in effect at least through October 2025 while the case was appealed. On November 5, 2025, the Supreme Court heard oral arguments in the consolidated case of Learning Resources v. Trump concerning the administration's tariffs imposed under the IEEPA. The challenges do not include tariffs imposed under Section 232 or Section 301.

The Trump administration argues that its tariffs will promote domestic manufacturing, protect national security, and substitute for income taxes. The administration views trade deficits as inherently harmful, a stance economists criticized as a flawed understanding of trade. Although Trump has said foreign countries pay his tariffs, US tariffs are fees paid by US businesses and consumers that import foreign goods. The tariffs contributed to downgraded GDP growth projections in both the U.S. and its trading partners by the Federal Reserve, the OECD, and the World Bank.

Since the 1980's, Trump has advocated for import tariffs as a tool to regulate trade and retaliate against foreign nations that he believes have taken advantage of Americans. In his campaigns for the US presidency, Trump promised to use tariffs to achieve a wide range of goals, including preventing war, reducing trade deficits, improving border security, and subsidizing childcare.

In 2018, Trump imposed tariffs on steel and aluminum imports, resulting in price increases for Americans. In December 2021, the price of one metric ton of hot-rolled band steel was $1,855 in the US compared to $646 in China and $1,031 in Europe. The World Trade Organization (WTO), a regulator of international trade, ruled that the implementation violated global trade rules. While he and Joe Biden rolled back some of these tariffs, most remained in place by the start of Trump's second term.

Trump also launched the China–United States trade war, which subjected 60% of US-China trade to 20% tariffs and was widely characterized as a failure for the United States.