The winners and losers from US tariffs after one year of Trump
Here’s who Trump’s so-called ‘liberation day’ tariffs impacted most
- The Trump administration implemented a sweeping tariff regime, aiming to revive manufacturing, rebalance trade, raise government revenue, and alter China's trade behaviour.
- One year on, the tariffs successfully raised US$287 billion in customs revenue, predominantly from American buyers, but failed to achieve a sustained improvement in the overall US trade balance.
- While US imports from China declined, China diversified its trade partners and supply chains reconfigured, leading to trade being transshipped through other nations rather than weakening China's global trade position.
- Domestically, the tariffs contributed to higher consumer prices and only a modest one per cent increase in manufacturing output, with industrial growth also hampered by labour shortages.
- The policy imposed significant economic hardship on low- and middle-income countries, particularly those dependent on the US market, with potential annual export earnings reductions of up to US$89 billion.