President Donald Trump’s sweeping new tariffs took effect Thursday, raising the average US import duty to over 17%—the highest since 1935, according to the Yale Budget Lab think tank.
Most imports now face a 10% baseline tariff, targeting goods from major trade partners like China, Japan, and the EU.
The levies now apply to everyday items such as toys, furniture, fruits, appliances, cars, and TVs. Trump celebrated the move online, claiming “Billions of dollars” will now flow into the US.
However, the think tank estimates these tariffs will cost US households up to $2,400 annually, with the steepest hikes on clothes, shoes, and food.
Businesses are delaying purchases and cutting costs. Economists warn of stagflation risks—rising inflation and slowing job growth—while lawsuits challenge Trump’s authority in imposing such import duties.
Yet, the President vows more duties ahead on drugs and semiconductors.