Trump's Tariffs Bring Little Change in Overall Rate
President Trump's recent flurry of trade moves has left importers wondering if the overall tariff burden on the US economy will increase. However, a new analysis by the Yale Budget Lab suggests that the effective US tariff rate remains below pre-Supreme Court peaks.
The lab found that the transition to new global tariffs translates into an effective US tariff rate of 11.1%, which is expected to rise to 11.8% by the end of the year. This is significantly lower than the 13.86% rate seen just before the Supreme Court struck down Trump's blanket tariffs in February.
The difference in rates comes despite a series of tariff announcements, including new tariffs on Brazil and plans for a 50% tariff on some Canadian goods in August. The president also threatened to impose 'a substantial TARIFF' on Europe over Google-related issues.
However, the growing list of exempted goods has kept overall rates lower than expected. Big-ticket items like oil and country-specific goods, including whiskey from Scotland and textiles from Central America, have dodged new tariffs.