Briefing

Tariffs Update: Potential Effects of the April 2 Announcements


Abstract: Our previous article presented a benchmark measure of the average effective tariff rate (AETR) based on detailed trade data for 2024. The analysis quantified the fiscal and trade effects of newly proposed tariffs through a series of counterfactual scenarios. These included tariffs on aluminum and steel, renewed duties on Chinese imports, and new levies on products from Canada, Mexico and the European Union (EU). The study showed that the AETR could rise significantly, moving up from a benchmark of 2.3 percent to as high as 15.0 percent under proposed policies. In this article, we build on this framework by incorporating the April 2 announcement of a global tariff plan.

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Description: Briefing

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2025-04-08

Volume: 25

Issue: 13