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22h ago

Trump’s Highest-Ever Tariffs Take Effect as Revenue and Consumer Costs Surge

Nonbinding pacts with the EU, Japan and the UK frame the new duties as federal appeals courts deliberate challenges to presidential tariff powers.

Cargo containers line a shipping terminal at the Port of Oakland on Thursday, July 31, 2025, in Oakland, Calif. (AP Photo/Noah Berger)
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Overview

  • Average import duties have surpassed 18%, generating about $30 billion in monthly revenue, the highest level since the 1933 Smoot-Hawley tariffs.
  • Preliminary pacts include a 15% U.S. tariff on EU imports in exchange for a $750 billion EU energy purchase pledge and $600 billion in U.S. investment through 2028.
  • The Federal Reserve has held benchmark rates at 4.25–4.5% and cautioned that tariffs are feeding through to rising consumer prices and could drive inflation to 3% by year-end.
  • Financial markets have stabilized after initial volatility, though economists note early signs of a moderation in U.S. economic growth.
  • Major importers, including Apple, report billions in extra duties, with the company disclosing $800 million in tariffs last quarter and anticipating $1.1 billion this quarter.