Since taking office in January, President Donald Trump has dramatically shifted the United States’ approach to trade by imposing a broad set of tariffs, effectively surrounding the nation’s economy with hefty trade barriers.

These import taxes, applied at double-digit rates to goods from nearly all countries, have disrupted global trade flows and brought financial pressure to both businesses and consumers worldwide. At the same time, they’ve funneled tens of billions of dollars into the U.S. Treasury.

Trump defends these measures by claiming they will restore economic wealth lost through trade imbalances. He believes the tariffs will reduce the long-standing trade deficit and reinvigorate American manufacturing. However, as the supply chains are disrupted, the costs have often been passed on, resulting in higher prices for U.S. companies and ultimately for American families.

Shipping containers from the Yang Ming Marine Transport Corporation, based in Taiwan, are stacked at the Port of Los Angeles. In the distance, the Long Beach International Gateway Bridge is clearly visible on April 9, 2025. (AP Photo/Damian Dovarganes, File)

Shipping containers from the Yang Ming Marine Transport Corporation, based in Taiwan, are stacked at the Port of Los Angeles. In the distance, the Long Beach International Gateway Bridge is clearly visible on April 9, 2025. (AP Photo/Damian Dovarganes, File)

President Trump’s unpredictability in rolling out trade duties — announcing them without warning, adjusting policies on short notice, and introducing unexpected tariffs — added to economic uncertainty and made 2025 an especially chaotic year for global markets.

Here’s a breakdown of how Trump’s tariffs changed the economic landscape over the past year, viewed through four key graphics.

Overall U.S. Tariff Burden

To gauge the broader consequences of tariffs, analysts turn to the “effective” tariff rate. Unlike individual tariff announcements, this figure reflects the real impact based on the total volume of goods crossing the border.

According to Yale Budget Lab data, the average effective tariff rate escalated throughout the year, peaking in April. Although it declined slightly afterward, by November the rate remained elevated at nearly 17% — a level seven times higher than the rate at the beginning of the year and the highest it has been since 1935.

Tariff Income Versus Trade Gaps

One major goal behind the tariffs, according to Trump, was to cut the American trade deficit and boost government revenue.

Indeed, the tariffs have generated significant income — more than $236 billion through November, far exceeding previous years. However, this still represents a small share of total federal revenue and falls far short of the amount needed to replace income taxes or fund generous government handouts, as some proponents have suggested.

The trade deficit has shrunk sharply compared to its March high, when it hit a record $136.4 billion as imports surged ahead of new tariff deadlines. By September, the monthly trade gap had decreased to $52.8 billion. Still, total trade shortfalls for the year remained about 17% higher compared to the same period in 2024.

Changing Import Patterns With Key Trade Partners

Trump’s tariff hikes affected nearly all trading partners, but had the most substantial impact on trade with China. Once the nation’s top source of imports, China dropped to third place by year’s end, behind Canada and Mexico. U.S. import duties on Chinese goods now average 47.5%, according to economist Chad Bown at the Peterson Institute for International Economics.

In the first nine months of the year, imports from China fell by almost a quarter. While imports from Canada also slipped, those from Mexico, Vietnam, and Taiwan saw notable increases during the same period.

Economic Volatility

Stock markets faced their most dramatic swings in response to major trade policy announcements. The S&P 500, a major index for U.S. equities, recorded its largest one-day and one-week fluctuations in April. March and June also saw the most extreme monthly losses and gains, respectively.