Import tariffs are about to skyrocket. The Tax Foundation projects that the average tariff rate on all goods entering the U.S. will rise to 8.4%, up from 2.5% last year. That would be the highest level in nearly 80 years, but still far below historical peaks. It’s a clear shift in strategy—one that’s been a long time coming.
For decades, the U.S. has played by different rules than its trading partners. While critics frame tariffs as reckless, they ignore a crucial fact: America already has the lowest trade barriers in the G20. Meanwhile, other nations slap hefty value-added taxes (VAT) on imports, functioning just like tariffs. Europe’s VAT rates range from 15% to 27%, yet they cry foul when the U.S. moves to protect its own industries. The double standard is glaring.
Trump is flipping the script. The tariff hike is part of a broader recalibration of global trade policy, aimed at correcting imbalances that have shortchanged American producers for decades. Supporters say this is long overdue, arguing that allies who benefit from open access to the U.S. market should be held to the same standards. The new policy sends a clear message: America will no longer play the role of the world’s economic doormat.
Sources:
https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/
https://x.com/zerohedge/status/1901384228685635928
https://x.com/leadlagreport/status/1901393057506844817
https://www.reuters.com/world/us/why-trump-has-thrown-vat-into-trade-stand-off-2025-02-21/