Trump Announces New Trade Tariffs Effective August 1, 2025

U.S. President Donald Trump has officially announced that a new round of trade tariffs will take effect on August 1, 2025. The announcement aligns with Trump’s continued protectionist approach during his second term in office, as reported by multiple official sources.

According to Wikipedia (last updated July 3, 2025), the United States' average effective tariff rate surged from 2.5% in January 2025 to 27% by April 2025, before falling to 15.8% in June 2025 following several policy revisions. The latest tariffs are part of the “reciprocal tariffs” strategy announced on April 2, 2025, aimed at reducing America’s trade deficits with key global partners.

An analysis by J.P. Morgan Research suggests that these tariff hikes may reduce U.S. GDP by up to 1% and global GDP by approximately 0.5% by 2026. The firm also raised the estimated probability of a global recession from 30% to 40% due to heightened trade tensions.

Meanwhile, a study by The Budget Lab at Yale University reported that previous tariffs under the Trump administration had increased consumer prices by 2.3% in the short term, resulting in an average loss of $3,800 in household purchasing power across the United States.

The U.S. government is expected to release further details in the coming days, including which products will be affected and the exact tariff rates. Economists have warned that this policy could trigger retaliatory measures from countries like China, which previously responded to U.S. tariffs by raising duties on American exports such as coal and crude oil.