According to en.wikipedia.org, during Donald Trump’s second term as U.S. President, the overall average effective U.S. tariff rate surged from 2.5% to an estimated 47% between January and April 2025 — the highest level in over a century.
Tariff Mechanisms and Legal Foundations
The administration relied on multiple statutory authorities to impose tariffs unilaterally. Although the U.S. Constitution grants Congress sole power to levy taxes, Congress has delegated authority to the president under specific conditions. Under Section 232 of the 1962 Trade Expansion Act, Trump raised tariffs on cars, steel, aluminum, copper, and related derivative products as high as 50%. New tariffs targeting large-scale batteries, cast iron and iron fittings, plastic piping, industrial chemicals, and power grid and telecom equipment were under consideration.
In April 2025, Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose so-called ‘Liberation Day tariffs’ of at least 10% on goods from nearly all countries. He also used IEEPA to order the early closure of the de minimis exemption — a provision allowing low-value shipments (under $800) to enter duty-free.
Legal Reversals and Refunds
In February 2026, the Supreme Court ruled the IEEPA-based tariffs illegal in Learning Resources, Inc. v. Trump. The government had collected $166 billion from more than 330,000 businesses in those unconstitutional IEEPA tariffs; U.S. Customs is now developing a system to process refunds.
Following the ruling, Trump imposed a global 10% tariff under Section 122 of the Trade Act of 1974, set to remain in effect for 150 days until July 24, 2026. He then threatened to raise it to 15% and issued an executive order to maintain the de minimis closure under IEEPA. Several states, led by New York, sued to block these tariffs.
Targeted Goods and Economic Rationale
The items most affected are metals, electrical equipment, vehicles, and computers. The administration justified the measures by citing goals to promote domestic manufacturing, protect national security, and substitute for federal income taxes. It views trade deficits as inherently harmful — a stance economists criticized as a flawed understanding of trade.
Documented Impacts
Studies cited in the source show that the tariffs have increased expenses and reduced earnings for companies. According to the report, the overall average effective tariff rate stood at 13.7% in February 2026 after adjustments, negotiations, and judicial invalidations.
Source: en.wikipedia.org
Compiled from international media by the SCI.AI editorial team.
