U.S. Tariff Rate Hits Record 25.9% Amid Trade Policy Shifts
The U.S. tariff rate on imports has surged to a historic 25.9%, the highest since the Great Depression, according to Japan’s annual trade report released Friday. The report attributes the sharp increase to the protectionist trade measures imposed by President Donald Trump.
Tariffs Reach ‘Historic Scale’, Says Japan
Japan’s Ministry of Economy, Trade and Industry stated that as of early April, U.S. tariff actions — including a steep hike to 145% on Chinese goods — have reached a historic scale. The ministry also warned that frequent shifts in Trump’s trade policy have created “heightened uncertainty” for global markets.
Comparison to the 1930s
According to the report, the U.S. tariff rate in 1933 stood at 19.8%. This followed the infamous Smoot-Hawley Tariff Act of 1930, which raised duties on imported goods to protect domestic industries during the Great Depression. The current rate, at 25.9%, now surpasses that era.
The Japanese trade ministry based its analysis on data from the International Monetary Fund (IMF). The April figures also reflect new tariffs placed on the U.S. auto sector, which have added further strain to global supply chains.
Partial Tariff Rollbacks Bring Temporary Relief
After reaching the 25.9% mark, the U.S. tariff rate saw a slight decline in May. This came after the United States and China agreed to roll back parts of their tariff war, easing some of the economic tensions. However, experts say the long-term impact remains uncertain.
In contrast, Japan’s own simple average tariff rate stood at just 3.7% in 2023, based on World Trade Organization (WTO) data. This sharp difference highlights the aggressive nature of recent U.S. trade policies.
