Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
U.S. tariffs - statistics & facts
Taxes imposed on imported or exported goods, otherwise called tariffs, have been central to U.S. trade policy since the Constitution came into effect in 1789. While originally intended to protect domestic industries and generate revenue, today they are often employed as economic and political tools to influence trade relationships. In recent years, U.S. tariffs have held particular significance in trade disputes, primarily with China. Under the first Trump administration, the U.S. imposed tariffs on billions of dollars' worth of Chinese goods, prompting retaliatory tariffs on American products. By the end of 2024, American importers had paid over 260 billion U.S. dollars in trade war duties.
Trump's tariffs: economic impact and public reaction
In the early months of his second presidency, President Trump unveiled an aggressive trade agenda centered on sweeping tariffs aimed at reshaping U.S. trade relationships. His proposals included a universal 10 percent baseline tariff on all imports, projected to generate an estimated 2.95 trillion U.S. dollars in revenue. However, in early April, President Trump made an executive order to implement new, widespread tariffs across more than 100 countries in what he called “Liberation Day”. In addition to the baseline tariffs, Trump also announced specific tariffs on a number of important trading partners, such as the European Union, China, and Vietnam, which account for over 40 percent of all U.S. imports. Shortly after, Trump announced a 90-day suspension of the newly introduced tariffs. However, the heightened tariffs on Chinese goods remained in place, resulting in China imposing counter-tariffs on a range of American exports, including coal, liquefied natural gas, machinery, and large motor vehicles.
In anticipation of the tariffs that took effect on April 5, the Dow Jones Industrial Average plunged by 1,679 points, or a decline of 4 percent, while the S&P 500 dropped 4.8 percent, marking its worst single-day performance since 2020. The sell-off erased over three trillion U.S. dollars in market value within days, eclipsing several historic economic crises. While U.S. markets sustained the heaviest effects, Trump’s escalating trade war lurched global financial markets into the steepest downturn since the COVID-19 pandemic, with global market capitalization losing ten trillion U.S. dollars, translating into over half of the entire GDP of the EU.
In January 2026, as President Trump put pressure on Greenland, Denmark, and European countries to gain control of the island, he threatened to impose a 10 percent tariff on imports from seven European countries backing Denmark's stance that Greenland is not for sale. Trump later backed down on the threats, but they again highlighted the volatile nature of the U.S. President's trade policy. As a result of a decreasing trust in the U.S. as a stable trading partner, but also because of increasing investment opportunities abroad and a sell-off in the bond market in Japan, the U.S. dollar has been losing value, for instance against the euro.
Shifting North American trade dynamics
Trade between the U.S., Mexico, and Canada is deeply connected, with the United States-Mexico-Canada Agreement (USMCA) facilitating high volumes of trade across North America. The U.S. and Mexico’s trade relationship has done nothing more than increase in the past two decades. In fact, the total trade value of goods between the two countries has almost tripled from 2004 to 2023, reaching almost 800 billion dollars. Interestingly, while Mexico led in overall import value, Canada demonstrated its importance as the primary import partner for 23 U.S. states in 2024. The total value of U.S. trade in goods with Canada reached an impressive 774 billion U.S. dollars in 2022, 421.1 billion of which were imports. A trade deal originally designed to facilitate free trade among North American countries, Trump’s proposed tariffs would directly conflict with the USMCA. A broad tariff would override certain conditions and potentially violate the agreement, as well give rise to retaliatory tariffs from Mexico and Canada. The U.S. automobile industry, for example, relies heavily on supply chains across all three countries and would be particularly impacted if tariffs were imposed. The ripple effect tariffs create extends beyond North America, impacting trade relations transnationally and shaping economic policy for years to come.
