President Donald Trump’s announcement of reciprocal tariffs on April 2 shocked the world.
If all tariffs are implemented as planned, the effective U.S. tariff rate (customs duty revenue as a proportion of goods imports) is expected to reach 22.44%, surpassing the notorious Smoot-Hawley Tariff Act of 1930 and marking the highest level since 1909.
U.S. Effective Tariff Rate
Source: Financial Times. Note: Based on Yale Budget Lab data. The effective tariff rate is customs duty revenue as a proportion of goods imports. Dotted line indicates estimate.
Even more astonishing was the method used to calculate the reciprocal tariff rates.
