His significant taxes on imports from nearly every nation have disrupted international trade and strained the finances of consumers and businesses across the globe. They have also generated tens of billions of dollars for the US Treasury.
Trump contends that his substantial new import tariffs are essential for reclaiming wealth that was “taken” from the US. He claims they will reduce America’s long-standing trade deficit and revitalize manufacturing within the nation. However, the disruption of the global supply chain has proved costly for households facing rising costs.
Furthermore, the erratic manner in which the president implemented his tariffs—announcing them, subsequently suspending or modifying them, and then introducing new ones—has made 2025 one of the most tumultuous economic years in recent history.
Here’s a look at the effects of Trump’s tariffs over the past year, illustrated through four charts.
A crucial metric for assessing the overall impact of tariffs on US consumers and businesses is the “effective” tariff rate, which, unlike the headline figures imposed by Trump for specific trade actions, reflects an average based on the actual imports entering the country.
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In 2025, according to data from the Yale Budget Lab, the effective US tariff rate peaked in April. However, it remains significantly higher than the average observed at the beginning of the year. Before consumption patterns stabilised, November’s effective tariff rate was nearly 17%—seven times higher than January’s average and the highest recorded since 1935.
One of the main arguments to justify his tariffs has been Trump’s repeated claims that they would lower America’s persistent trade deficit and generate revenue for the Treasury.
Indeed, Trump’s elevated tariffs have substantially increased revenue, bringing in over $236 billion this year through November, far exceeding previous years. Yet, they still represent only a small portion of the federal government’s total revenue. They have not produced enough to substantiate the president’s assertion that tariff income could replace federal income taxes or facilitate direct cash payments to Americans.
Meanwhile, the US trade deficit has decreased considerably since the beginning of the year. The trade gap reached a monthly high of $136.4 billion in March, as consumers and businesses rushed to import foreign goods before Trump imposed his tariffs. The trade gap contracted to $52.8 billion in September, the most recent month for which data is available. However, the year-to-date deficit remained 17% higher than that of January-September 2024.
Trump’s tariffs in 2025 affected nearly every nation globally, including America’s primary trading partners. However, his policies have had the most significant effect on US trade with China, which was once the largest source of American imports but has now fallen to No. 3 behind Canada and Mexico. Current US tariffs on Chinese imports reach 47.5%, as calculated by Chad Bown of the Peterson Institute for International Economics.
The value of goods entering the US from China declined by nearly 25% during the first three quarters of the year. Imports from Canada also decreased, while the value of products from Mexico, Vietnam, and Taiwan increased year-to-date.
For investors, the stock market experienced its most volatile moments this year during some of the most unpredictable periods related to Trump’s tariffs.
The S&P 500, an index tracking the largest public companies in the US, experienced its largest single-day and weekly fluctuations in April, along with its biggest monthly losses and gains in March and June, respectively.
