Starting in early 2025, President Trump expanded tariffs on goods from a wide range of countries under various authorities, including the International Emergency Economic Powers Act (IEEPA). The US Supreme Court in February 2026 struck down IEEPA tariffs. Other tariffs imposed by President Trump, including some dating back to 2018, remain in place.
President Trump announced two sets of tariffs under Section 232 of the Trade Expansion Act on April 2, 2026. The first set restructures and reduces tariffs on steel, aluminum, and copper. The second set imposes tariffs of up to 100 percent on patented pharmaceutical imports.
TPC finds that when fully in effect, together these policies reduce the average tariff rate by 1.4 percentage points. They lower the average individual tax burden by about $200 (down to $1,050) in 2026. The revised metal tariffs will reduce revenue by $130 billion over ten years, while the pharmaceutical tariffs will raise $81 billion. TPC offers an explainer on these tariffs. TPC’s model release notes contain a comprehensive list of changes.
TPC tracks tariff developments and updates this page with details and estimates of how tariffs will affect federal revenues, households, and the economy.
Jump to:
1. US tariff policy snapshot
2. Household impact
3. Business impact
4. Tariff revenue
5. Explanation of tariff policies
6. Methodology
US Tariff Policy Snapshot
TPC estimates that the average tariff rate on all imports is 10 percent. Figure 1 shows average tariff rates on select items. The average tariff of a good changes as the administration announces new policies affecting that good. Country-specific tariffs can also shift a good’s average tariff rate if much of that good originates from the targeted country.
FIGURE 1
Figure 2 summarizes tariff rates by country. A country’s average tariff rate mostly reflects good-specific tariffs and the composition of its exports to the US. Some countries are subject to additional tariffs, such as levied under Section 301 of the Trade Act of 1974. Tariffs announced but not yet in effect are not reflected in the figure.
FIGURE 2
Household Impact
TPC estimates that tariffs announced by the Trump administration through December 4, 2025 will impose an average burden of about $1,050 per tax unit (or household) in calendar year 2026. Figure 3 shows that the average federal tax rate will rise by 0.9 percentage points for households in the bottom quintile—compared with a 0.7 percentage point increase for those in the top quintile.
FIGURE 3
Business Impact
Figure 4 traces how tariffs flow through various sectors of the economy. While tariffs are levied predominantly on tangible imports, their incidence can fall on other commodities. This is particularly true for goods such as aluminum that serve as inputs for domestic production.
Services as a group pick up about one-sixth of the total tariff burden, even though tariffs are not directly applied to services. This is because metals and minerals, chemical products, and computers and appliances are heavily used as inputs by health care, professional, and government services.
FIGURE 4
Tariff Revenue
TPC estimates that tariffs will raise about $911 billion in fiscal years 2026 through 2035, with $185 billion raised in 2026. The decline in revenue over time reflects TPC’s assumption that US buyers will gradually shift away from imports with high duties.
FIGURE 5
Explanation of Tariff Policies
Figure 6 illustrates key categories of tariffs that significantly determine the taxation of imports. These categories often stack on top of each other, leading to total tariff rates that are higher than any single announcement suggests.
FIGURE 6
Table 1 provides more details on all the tariff types considered in TPC’s estimates.
Table 1
Methodology
To learn more about how TPC models the impact of tariffs, see a Description of TPC’s Tariff Models.
