Since returning to the White House in January, President Donald Trump has upended decades of US trade policy — erecting a wall of tariffs around what used to be a wide-open economy.
Its double-digit taxes on imports from nearly every country have disrupted global trade and strained the budgets of consumers and businesses around the world. They have also raised tens of billions of dollars for the US Treasury.
For the latest updates on the US Supreme Court’s customs decision, click here
Trump has argued that his steep new import taxes are necessary to bring back wealth that has been “stolen” from the US. He says he will reduce America’s trade deficit and bring manufacturing back to the country. But reviving the global supply chain has proven costly for households facing rising prices. Taxes are paid by importers who usually try to pass on the higher costs to their customers. This includes businesses and ultimately American households.
And the erratic way the president has implemented his tariffs — announcing them, then suspending or reversing them before conjuring new ones — has made 2025 one of the most turbulent economic years in recent memory.
Here’s a look at the impact of Trump’s tariffs over the past year in four charts.
Effective US Tariff
The key figure for the overall impact of tariffs on American consumers and businesses is the “effective” tariff rate — which, unlike the headline figures Trump has put in place for specific trade actions, provides an average based on actual imports coming into the country.
US tariffs remain elevated throughout 2025 after peaking in April
In 2025, the effective U.S. tariff rate peaked in April, according to Yale Budget Lab data. But it is still much higher than the average at the beginning of the year. Before consumption shifts were completed, November’s effective tariff rate was nearly 17%—seven times the January average and the highest since 1935.
Tariff revenue versus the US trade deficit
Among the selling points to justify his tariffs, Trump has repeatedly said they will reduce America’s long-term trade deficit and bring revenue to the Treasury.
US trade deficit dwarfs customs revenue
Trump’s higher tariffs are sure to raise money. This year through November, they made more than $236 billion – far more than in previous years. However, it still accounts for only a fraction of the federal government’s total revenue. And they didn’t raise nearly enough to justify the president’s claim that tariff revenue could replace federal income taxes — or allow for windfall dividend checks for Americans.
Meanwhile, the US trade deficit has narrowed significantly since the start of the year. The trade deficit peaked in March to a monthly record of $136.4 billion as consumers and businesses rushed to import foreign products before Trump could impose his tariffs on them. The trade gap narrowed to $52.8 billion in September, the latest month for which data is available. But the annual deficit was still 17% ahead of January-September 2024.
Imports are shifting at the largest American trading partners
Trump’s 2025 tariffs hit nearly every country in the world — including America’s biggest trading partners. But his policies have had the biggest impact on U.S. trade with China, once the largest source of U.S. imports and now No. 3 behind Canada and Mexico. US tariffs on Chinese imports now stand at 47.5%, according to calculations by Chad Bowen of the Peterson Institute for International Economics.
China sees largest decline in US imports in 2025
The value of goods coming into the US from China fell by nearly 25% in the first three quarters of the year. Imports from Canada also fell. However, the value of products from Mexico, Vietnam and Taiwan increased year-on-year.
Market fluctuations
For investors, the most volatile moments in the stock market this year have come amid some of the most volatile moments for Trump’s tariffs.
This year’s biggest swings in the S&P
The S&P 500, the index for the largest U.S. public companies, posted its biggest daily and weekly swings in April — and its biggest monthly losses and gains in March and May.
