Increased customs duties reach an average of 20.1%, the highest since the 1910s.
In the heart of 2025, American tariffs have soared to their highest average levels since the early 1910s, reaching between 20.1% and 27%, according to recent calculations. This significant increase is a stark contrast to the 2.4% average rate at the beginning of President Trump's administration.
The surge in tariffs is primarily due to the broad and heightened tariffs imposed starting in early 2025. These include a baseline 10% tariff on nearly all imports and extremely high tariffs on Chinese goods, reaching up to 145%, as a result of reciprocal trade escalations.
This tariff war has had a profound impact on trade with specific countries. The U.S. and China have engaged in steep reciprocal tariffs, with U.S. tariffs on Chinese goods reaching 145%, and Chinese tariffs on U.S. goods approaching 125%. This has led to sharply reduced trade volumes and disrupted supply chains, causing significant product shortages and price increases in U.S. markets.
While negotiated trade deals with countries like the European Union, Japan, South Korea, and likely Canada have modified or lowered tariffs somewhat from the highest threat levels, these rates are still elevated above pre-2025 levels. The imminent expiration of trade "truce" periods with China and other partners could further re-escalate tariffs.
The economic impact of these tariffs on the U.S. GDP and consumers has been substantial. Estimates from The Budget Lab at Yale suggest the overall price level in the U.S. has risen about 1.5-1.8% due to tariffs, translating into an average income loss equivalent of around $2,100 to $2,400 per household annually because of higher costs on goods, particularly clothing and textiles where price hikes reach 18-39%.
The trade war and tariffs have also caused volatility in stock markets (notably a crash in April 2025) and created broad concerns among business leaders—84% expressed worry about the negative economic impact.
Despite significant increases in tariff revenues, these are estimated to cover less than 25% of the potential loss in income tax revenues under proposals to replace income tax with tariffs.
In summary, the highest sustained tariffs in over a century have severely disrupted trade with major partners, notably China, increased prices and costs for U.S. consumers (with pronounced effects on certain sectors like apparel), and imposed downward pressure on U.S. household incomes and economic growth.
- The French industry, particularly the textile sector, has been significantly impacted by the increased tariffs, with price hikes reaching 18-39%, as reported by The Budget Lab at Yale.
- The escalating trade conflicts and tariffs have caused political implications, leading to concerns among business leaders worldwide, with 84% expressing worry about the negative economic impact.
- Beyond trade and finance, the general news has been dominated by the ongoing tariff wars and their effects, such as disruptions in war-and-conflicts-related deals, given the sensitive nature of trade relationships between major global powers like the U.S. and China.
