US tariffs – we are taking stock

The peak seems to have passed...

The self-proclaimed “Tariff Man,” Donald Trump, has reached his limits. In February, the Supreme Court ruled that tariffs imposed under emergency laws are unlawful, as such laws do not authorize the president to impose tariffs. The tariffs Trump subsequently imposed for 150 days on a different legal basis to combat balance of payments imbalances were recently rejected by a trade court, though this legal dispute will continue at a higher level and they are allowed to remain in effect until a decision is made on the government's appeal..

Furthermore, Trump’s tariffs have proven to be riddled with loopholes. The Trump administration has repeatedly granted exemptions to companies, industries, and products. Even before Trump, the regulatory framework allowed for numerous exemptions, which went unnoticed at the time due to the minimal tariff rates in effect.

As a result, tariffs are currently significantly lower than had been feared last April—on “Liberation Day,” Trump launched a sweeping offensive with numerous tariff hikes. While an average tariff rate of 20 to 25% was anticipated at the time, the effective tariff rate in the U.S. currently averages just under 7%. Although this is significantly higher than the 2–3% that was typical before 2025, it is already noticeably lower than the roughly 11% reached last October.

... even in the trade conflict with China

The trade conflict with China was the starting point and, for a long time, the main arena for the attempt to use tariffs as a key economic policy tool. This began as early as Donald Trump’s first term (2017–2021) and escalated at the start of his second term. Several rounds of tariffs drove U.S. tariffs on Chinese imports up to nearly 50%. Unlike most of the U.S.’s other trading partners, however, China fought back and imposed tariffs on U.S. goods. Above all, the country’s dominance in key products such as rare earths gave it leverage to force the U.S. into certain compromises. Furthermore, U.S. tech companies rely on component supplies from China and were able to persuade the U.S. government to grant exemptions from tariffs on high-tech imports. As a result, the effective tariff rate on imports from China was halved again and most recently stood at around 23%.

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