Trump overturned decades of US trade policy in 2025. See the impact of his tariffs, in four charts
President since returning to the White House in January Donald Trump It upended decades of U.S. trade policy; It built tariff walls around what used to be a wide open economy.
Double-digit tariffs on imports from nearly every country have disrupted global trade and strained the budgets of consumers and businesses around the world. They also raised tens of billions of dollars for the U.S. Treasury.
Trump argued that new higher import taxes were necessary to restore former prosperity. “stolen” He says the US will narrow America’s decades-old trade deficit and bring production back to the country. But disrupting global supply chains has proven costly Households facing rising prices. The president’s erratic announcement of tariffs, then suspending or changing them before creating new tariffs, has made 2025 one of the most tumultuous economic years in recent memory.
Here’s a look at the impact of Trump’s taxes last year in four charts.
Effective US tariff rate
An important figure regarding the overall impact of tariffs on U.S. consumers and businesses is the “effective” tariff rate, which provides an average based on actual imports coming into the country, as opposed to the headline figures Trump has imposed for specific trade actions.
In 2025, the actual U.S. tariff rate peaked in April, according to data from the Yale Budget Lab. However, it is still well above the average seen at the beginning of the year. Before the change in consumption was completed, the effective tariff rate for November was approximately 17%; This rate was seven times the January average and the highest rate since 1935.
Tariff revenue and America’s trade deficit
Among his selling points to justify his tariffs, Trump has repeatedly said they would reduce America’s long-standing tariffs. trade deficit and bring The income will be transferred to the Treasury.
Trump’s high tariffs certainly raise money. They generated more than $236 billion in revenue through November this year; This is much more than in previous years. But they still account for only a small portion of the federal government’s total revenue. And they didn’t raise enough money to justify the president’s offer claim that tariff revenues may replace or allow federal income taxes. Windfall dividend checks for Americans.
Meanwhile, the U.S. trade deficit has fallen significantly since the beginning of the year. Consumers and businesses saw the trade deficit reach a monthly record high of $136.4 billion in March. Rushed to import foreign products Before Trump imposed tariffs on them. The trade deficit narrowed to $52.8 billion in September, the last month for which data is available. However, the year-to-date budget deficit was still at 17% before January-September 2024.
