It’s been a year since President Trump imposed his sweeping “Liberation Day” tariffs, promising to generate factory jobs and hundreds of billions of dollars.
Since then, nearly 90% of the economic burden has fallen on U.S. companies and consumers. American households are on track to pay $2,500 in tariff costs this year, a 43% increase from 2025.
Trump’s tariffs raised retail prices for imported goods by 7 percentage points in 2025, and raised taxes by an average of $1,000 per household.
The Center for American Progress estimates that the U.S. has lost about 89,000 manufacturing jobs,189,600 blue-collar jobs, and 123,700 jobs in transportation and warehousing. The job loss is equivalent to closing 2,800 factories nationwide.
The Supreme Court struck down Trump’s “Liberation Day” tariffs as illegal on February 20, 2026. His new tariffs, imposed right after the ruling, are expected to increase taxes by another $700 in 2026.
What tariffs did Trump impose in 2025, and what’s the status now?
Trump’s “Liberation Day” tariffs set a minimum 10% rate for all countries on April 2, 2025. He set higher rates for the U.S.’s top trading partners, including 34% on China, 26% on India, 37% on Bangladesh, 20% on the European Union, 49% on Cambodia, and 46% on Vietnam.
Many countries retaliated with higher tariffs on U.S. imports, leading to ongoing trade wars and renegotiations. The average effective tariff rate in 2025 was the highest it’s been since 1947.
After the Supreme Court declared these tariffs illegal, Trump implemented another 10% temporary tariff on all countries on February 20, 2026. The Supreme Court declared his replacement tariffs were also illegal on May 7.
The replacement tariffs will remain in effect as the White House appeals the case.
Why are companies raising prices?
Tariffs on copper, steel, and aluminum—which the White House expanded on April 2, 2026—have raised manufacturing costs across the board. Companies have passed these costs onto consumers by raising retail prices.
Many grocery items (canned food, soft drinks) and household appliances (refrigerators, ovens, washing machines) rely on steel and aluminum components. Tariffs on softwood timber and lumber have driven up furniture costs (couches, cabinets, vanities).
Imported clothing prices rose more than 20 percentage points in 2025, as American retailers import most of their apparel from China, Bangladesh, and Vietnam.
Trump’s 25% tariff on cars and auto parts raised vehicle prices by an average of 13.5%, or an additional $6,400 for a new car.
Trump’s pharmaceutical tariff, which goes into effect on July 31, 2026, is expected to raise drug prices and worsen shortages.
Will the White House refund illegal tariff fees?
The Supreme Court did not outline a refund process for American companies, which have paid up to $175 billion in illegal tariffs.
The federal government launched an online portal for refund requests on April 20, 2026. But there are eligibility limits, and the process has been delayed. Individual consumers are not eligible to apply, despite taking on much of the cost.
Delays in processing refunds could cost American taxpayers billions of dollars in additional interest that the government owes importers, the Cato Institute found.