In 2025, the federal government increased tariffs—or taxes on items imported from other countries—to their highest level since the 1930s. The “effective tariff rate,” or revenue divided by imports, jumped from 3 percent to about 10 percent. After the U.S. Supreme Court struck down most of the hikes in February 2026, the Trump administration responded with a new 10 percent global tariff. While tariffs in some cases can protect American workers, research shows that at least 90 percent of their cost is passed onto U.S. consumers through higher prices.
