How much cash is the US raising from tariffs?

Donald Trump has delivered a profound shock to the global trading system since returning to the White House.

The US president announced on 2 April, so-called Liberation Day, a slew of swingeing so-called “reciprocal” tariffs, or import taxes, hitting dozens of countries around the world.

Many of these have been paused. And since then, Trump has also announced agreements with several partners – including the UK, Vietnam, Japan, and the European Union – which reduce some tariff levels.

But particular commodities and goods such as automobiles and steel have also been targeted with significant industry-specific tariffs by Washington – and the overall average US tariff rate is at its highest in almost a century.

The tariffs themselves are ultimately paid by the US companies that bring goods into the country from abroad.

The impact of all this is being felt in the US and global economy in different ways.

More tariff revenue for the US government

The Budget Lab at Yale University estimates that, as of 28 July 2025, the average effective tariff rate imposed by the US on goods imports stood at 18.2%, the highest since 1934.

A widening of the US trade deficit

Donald Trump regards bilateral trade deficits as evidence that other countries are taking advantage of the US by selling more goods to America than they buy from it.

One of the justifications for his tariffs is to address that imbalance by curbing imports and forcing other countries to lower their own barriers to US goods.

However, one of the standout impacts of Donald Trump’s trade war, so far, has been to increase US goods imports.

This is because US firms stockpiled supplies in advance of tariffs being implemented to avoid being forced to pay the additional tax.

Meanwhile, US exports have seen only a modest increase.

The net result is that the US goods trade deficit has widened, not fallen.

It reached a record $162bn in March 2025, before falling back to $86bn in June.