Since his return to the White House in January, President has reversed decades of U.S. trade policy — constructing a tariff wall around what was previously a wide-open economy.
His double-digit levies on imports from nearly every country have unsettled global trade and burdened the budgets of consumers and businesses around the world. They have also brought in tens of billions of dollars for the U.S. Treasury.
Trump has maintained that his steep new import taxes are needed to recover wealth that was from the U.S. He asserts they will reduce America’s decades-long trade deficit and return manufacturing to the nation. Yet overturning the global supply chain has demonstrated expensive consequences for . And the haphazard fashion in which the president deployed his tariffs — announcing them, then delaying or adjusting them before devising new ones — rendered 2025 one of the most volatile economic years in modern recollection.
Below is a review of Trump’s tariff impacts over the past year, presented in four charts.
Effective US tariff rate
A crucial figure for gauging the overall effect of tariffs on U.S. consumers and businesses is the “effective” tariff rate — which, in contrast to the prominent numbers Trump set for particular trade measures, offers an average derived from the actual goods entering the country.
In 2025, according to Yale Budget Lab data, the effective U.S. tariff rate reached its highest point in April. Yet it remains substantially above the average recorded at the year’s beginning. Prior to confirming changes in consumption patterns, November’s effective tariff rate stood at nearly 17% — sevenfold higher than January’s average and the highest level observed since 1935.
Tariff revenue vs America’s trade deficit
Among the arguments used to defend his tariffs, Trump has frequently claimed they would shrink America’s longstanding and bring
Trump’s elevated tariffs are clearly generating revenue. They have collected over $236 billion this year through November — far exceeding previous years. However, they still represent only a small portion of the federal government’s overall revenue. And they have not produced nearly enough to support the president’s that tariff revenue could substitute for federal income taxes — or allow for
Meanwhile, the U.S. trade deficit has declined considerably since the year’s onset. The trade shortfall hit a monthly peak of $136.4 billion in March, as consumers and businesses before Trump’s tariff implementation. The deficit contracted to $52.8 billion in September, the most recent month with available figures. However, the cumulative deficit for the year remained 17% higher than the January-September period in 2024.
Import shifts with America’s biggest trading partners
Trump’s 2025 tariffs struck nearly every nation globally — including America’s largest trading partners. Yet his policies have most significantly affected U.S. trade with China, formerly the top source of American imports and now ranked third after Canada and Mexico. U.S. tariffs on Chinese imports according to calculations by Chad Bown of the Peterson Institute for International Economics.
The worth of merchandise entering the U.S. from China decreased by nearly 25% during the first nine months of the year. Imports from Canada also declined. However, the value of goods from Mexico, Vietnam, and Taiwan increased over the year-to-date period.
Market swings
For investors, this year’s most turbulent periods in the stock market occurred alongside some of the most unstable phases of Trump’s tariffs.
The S&P 500, a benchmark for America’s largest publicly traded companies, experienced its most significant daily and weekly fluctuations in April — and its greatest monthly declines and advances in March and June, respectively.
Want a summary of how Trump’s trade measures developed in 2025? See