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Global Trade Disrupted: Early Impacts of U.S. Tariffs
The last time the global economy was adjusting to escalating trade tensions and major new import tariffs between major economies, in 2018, the primary issue was U.S. tariffs on China. In 2025, trade tensions are more broad-based and U.S. tariffs are much higher. The U.S. effective tariff rate increased from under 5% in 2024 to around 17% in the latest data (Chart 1). U.S. tariffs on imports from virtually all its trading partners have increased, not only on China. President Trump was clear on his tariff plans in the election, and U.S. businesses rushed to import goods early in 2025 to get ahead of U.S. tariffs. ... (full story)
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