First Anniversary of Liberation Day in the United States. Is Trump's Trade Strategy Working?
The first anniversary of the promulgation of Liberation Day is being observed, on which the President of the United States announced a widespread and massive increase in tariffs applied to every nation with which the United States trades. On that day, a 10% tariff was decreed on all American imports, in addition to an additional surcharge under the concept of "reciprocal tariffs" whose calculations were and remain a true mystery. Days earlier, Trump imposed a 25% tariff on imported cars and automotive parts. With these new tariffs, Donald Trump proposed to regain sovereignty and put the United States first, according to his own words.
TL;DR
- The average US tariff increased from 2.6% to 10%-13% after "Liberation Day".
- Inflation remained largely unchanged, with the cost of tariffs mostly borne by US importers and consumers.
- Tariffs acted as an additional tax of approximately $1,000 per household in 2025.
- Government fiscal revenue significantly increased, but a Supreme Court decision mandates refunds of around $175 billion.
- The merchandise trade deficit reached a historic high of $1.24 trillion in 2025.
- Trading partners cautiously diversified markets and broke dependence on the US.
- Job creation in key sectors like manufacturing and agriculture did not increase; overall job growth slowed significantly.
- US GDP real growth decelerated to 2.2% in 2025 from 2.8% in 2024.
- The tariff policy is described as a high-cost experiment with mixed results and uncertain long-term benefits.