U.S. Tariffs — Statistics & Facts 2026

U.S. Tariffs 2026 — The Largest Tax Increase Since 1993

The United States has undergone the most dramatic transformation of its trade policy regime in nearly a century, with tariff rates surging from a pre-2025 average of just 2.3-2.7% to an effective rate of 10.3% by January 2026 — the highest level since 1947, according to Penn Wharton Budget Model calculations based on US International Trade Commission data. This seismic shift was driven by an aggressive expansion of tariffs under multiple legal authorities throughout 2025, targeting imports from virtually every major trading partner and covering products ranging from steel and aluminum to consumer electronics and automobiles. The Tax Foundation estimates that the 2025-2026 tariffs represent the largest US tax increase as a percentage of GDP since 1993, amounting to an average burden of approximately $1,500 per household in 2026. Customs duties collected by the Department of Homeland Security reached an extraordinary $287 billion in calendar year 2025, up 192% from $98 billion in 2024, making tariffs one of the fastest-growing federal revenue sources.

The tariff landscape was fundamentally reshaped on February 20, 2026, when the US Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose tariffs — striking down the legal foundation for the broadest tariff actions of 2025. Within hours, President Trump announced replacement tariffs of 10% on all imports under Section 122 of the Trade Act of 1974, effective February 24, 2026, for a maximum of 150 days. Non-IEEPA tariffs, including Section 232 tariffs on steel (up to 50%), aluminum (25%), and automobiles (25%), as well as Section 301 tariffs on Chinese goods, remain fully in effect. The result is a tariff regime that remains dramatically elevated compared to the free-trade norms of the previous three decades. For context on how these tariffs are affecting financial conditions, see our financial markets in the US statistics.

US tariffs generated $287 billion in customs revenue in 2025 — up 192%. The effective tariff rate reached 10.3% in January 2026 before the Supreme Court struck down IEEPA tariffs. Section 122 replacement tariffs of 10% took effect February 24, 2026. China faces 34% effective rates, steel and aluminum 41%.

US Tariff Revenue 2019-2025 — From $71B to $287B

The trajectory of US customs revenue tells the story of a fundamental policy transformation. In 2019, customs duties totalled approximately $71 billion, already elevated above pre-trade-war levels due to the first round of Section 301 tariffs on China imposed in 2018. Revenue remained in the $74-98 billion range through 2020-2024 as pandemic disruptions and trade normalisation balanced each other. The explosion came in 2025, when the dramatic expansion of tariffs drove customs revenue to $287 billion — the highest level in nominal terms in US history. The fourth quarter alone generated $97.5 billion, a 281% increase over Q4 2024. Between January 2025 and January 2026, new tariffs raised an estimated $209 billion in additional revenue above the pre-tariff baseline. The Tax Policy Center projects that tariffs will raise approximately $963 billion over fiscal years 2026-2035, with $194 billion in 2026, though revenue is expected to decline as importers shift purchasing patterns. For perspective on the broader US economy absorbing these costs, see our GDP of the United States statistics.

US Customs Revenue 2019-2025 — $Billions

The bar chart below illustrates the staggering scale of the revenue increase, with the 2025 bar towering over every previous year. The jump from approximately $98 billion in 2024 to $287 billion in 2025 represents a step-change in the role of tariffs in US fiscal policy — though economists caution that this revenue comes at the cost of higher consumer prices and reduced economic output.

Effective Tariff Rate — January 2025 to January 2026

The monthly effective tariff rate data reveals the dramatic escalation of US trade barriers through 2025. Starting at just 2.3% in January 2025, the rate climbed steadily — reaching approximately 7% by April after the initial IEEPA actions, surging to 18.6% by August (the highest since 1933), before moderating to 10.3% by January 2026 as import substitution effects took hold. The post-SCOTUS environment is expected to see the rate settle at approximately 5.6-7.7%, still the highest since the early 1970s.

Supreme Court Strikes Down IEEPA Tariffs — 6-3 Decision

The most consequential legal development in US trade policy in decades came on February 20, 2026, when the Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that IEEPA does not authorise the President to impose tariffs. Chief Justice Roberts delivered the majority opinion, joined by Justices Gorsuch, Barrett, Sotomayor, Kagan, and Jackson, while Justices Thomas, Alito, and Kavanaugh dissented. The ruling struck down all IEEPA-based tariffs — including reciprocal tariffs, fentanyl-related tariffs on Canada, Mexico, and China, and the universal baseline tariff — as unlawful from inception. The Court emphasised that tariff authority lies with Congress under the Constitution.

President Trump immediately issued an Executive Order terminating IEEPA tariffs and simultaneously proclaimed a 10% global tariff under Section 122 of the Trade Act of 1974, effective February 24, 2026, for 150 days (until July 24). He announced plans to raise this to 15%, the statutory maximum, though this increase had not been formally implemented as of March 2026. Section 122 tariffs exempt energy products, pharmaceuticals, critical minerals, certain electronics, and aerospace products. Over 2,000 importers — including FedEx, Costco, L'Oreal, Dyson, and Nissan — have filed refund cases at the Court of International Trade, with interest accruing at $650 million per month. The administration launched Section 301 investigations into 15 countries and the EU as a pathway to more permanent tariffs beyond July 2026. For context on how global stock markets responded, see our NASDAQ stock market statistics.

Tariffs by Country — China 34%, USMCA 85% Exempt

China faces the highest effective tariff rate at 33.9% as of January 2026, reflecting layered Section 301 tariffs (from 2018), IEEPA fentanyl tariffs (now struck down but partially replaced by Section 122), and sector-specific duties. China's share of US imports has fallen dramatically from approximately 22% in 2017 to around 14% in 2024 as companies diversified supply chains to Vietnam, India, Mexico, and other alternatives. The shift has accelerated trade with Southeast Asia, particularly Vietnam, where effective tariff rates have risen sharply.

Canada and Mexico have largely avoided the tariff burden through USMCA. The share of imports claiming USMCA exemption surged to nearly 85% by January 2026, producing effective tariff rates below 5% — a dramatic shift in trade compliance behaviour as companies restructured documentation to qualify. The European Union faces Section 232 tariffs on steel and aluminum plus the Section 122 baseline. For context on how financial markets in Germany are responding to US trade tensions, see our analysis.

Effective Tariff Rates by Product — January 2026

The horizontal bar chart reveals dramatic variation across product categories, from steel and aluminum at 41.1% to pharmaceuticals at less than 2%. These high metal tariffs cascade through manufacturing supply chains, raising costs for domestic producers of everything from automobiles to appliances to construction materials.

Tariff Burden by Major Trading Partner

The donut chart below shows how the tariff burden is distributed across US trading partners, with China bearing a disproportionate share of the highest rates while USMCA partners benefit from the lowest effective duties. The emergence of Vietnam and India as increasingly important suppliers reflects the ongoing reconfiguration of global supply chains.

Economic Impact — GDP -0.5pp, Unemployment +0.7pp

The macroeconomic impact of the 2025 tariff regime has been substantial and broadly negative. The Yale Budget Lab estimates that all 2025 US tariffs plus foreign retaliation lowered real GDP growth by approximately 0.5 percentage points in both 2025 and 2026. In the long run, real GDP remains persistently 0.4% smaller — equivalent to approximately $125 billion annually. US exports are projected 15-16% lower than the counterfactual. The unemployment rate is estimated 0.7 percentage points higher by end-2026, with payroll employment approximately 490,000 lower by end-2025.

The price impact has been significant. The Yale Budget Lab estimates a short-run price level increase of 1.1-1.3%, equivalent to $1,500-1,800 per household. Imported core goods prices rose 1.3% during 2025, with estimated pass-through of 40-76% for core goods. However, US manufacturing output is projected to expand by 2.5-3.2% in the long run as domestic producers gain market share — though these gains are offset by contractions in construction (-3.8%) and agriculture (-0.3-0.7%). The tariff burden is regressive: the Tax Policy Center found the bottom quintile's average federal tax rate rises 1.1 percentage points versus 0.9 for the top quintile. For context on the global economic effects, see our global economy statistics.

US Tariff Regime — By Legal Authority

The sortable table below provides the definitive breakdown of every major tariff action in effect or recently terminated. Multiple overlapping authorities create cumulative rates exceeding any single announced rate. Click any column to sort and compare across tariff actions.

Pre-SCOTUS vs Post-SCOTUS Effective Rates

The grouped bar chart below compares effective tariff rates before and after the SCOTUS ruling across major trading partners, illustrating how the removal of IEEPA tariffs and their replacement with Section 122 tariffs changed the landscape. China's rate dropped modestly given its Section 301 tariffs remain, while the EU and Japan saw more significant declines as IEEPA reciprocal tariffs were removed.

The US tariff regime has undergone a fundamental transformation since 2025. The Supreme Court struck down IEEPA tariffs on February 20, 2026 in a 6-3 decision. Section 122 replacement tariffs of 10% expire July 24, 2026. Section 301 investigations into 15 countries and the EU may provide the basis for more permanent tariffs.

US Tariffs — Key Statistics at a Glance

The following stat cards distil the most critical numbers from the US tariff landscape in 2026 — a trade policy regime in transition from the aggressive IEEPA framework that pushed rates to 1930s levels, through the Supreme Court's landmark ruling, to the current Section 122 tariffs and the looming question of what comes next when they expire in July 2026.

US Tariff Outlook 2026-2028 — Section 301 Investigations Loom

The outlook for US trade policy is characterised by profound uncertainty. The 150-day Section 122 tariffs expire on July 24, 2026, unless extended by Congress — which appears unlikely given bipartisan disapproval. The administration's strategy for maintaining elevated rates is the Section 301 investigation process, covering 15 countries and the EU, announced March 11, 2026. Section 301 investigations provide a more legally durable basis for tariffs, requiring formal findings of unfair trade practices rather than emergency declarations.

The Tax Foundation projects that if Section 122 tariffs expire as scheduled, the average effective rate settles at approximately 5.6% — still the highest since 1972 and more than double the pre-2025 level. Over 2026-2035, tariffs are projected to raise $963 billion to $2.0 trillion depending on which policies remain. For context on how markets are pricing in this uncertainty, see our stock market terminology guide, and for the broader picture see our financial markets statistics.

Frequently Asked Questions — US Tariffs