US Tariff Rate Hits 20.1%, Highest Level Since 1910s

Strategic Insights -

The average US tariff rate has surged to 20.1%, its highest sustained level since the 1910s, according to new estimates released by the World Trade Organization (WTO) and the International Monetary Fund (IMF) on Friday. This sharp rise follows the implementation of fresh duties as part of President Donald Trump's push for "reciprocal" trade terms. Since Trump's inauguration in January 2025, the US average tariff rate has increased from 2.4% to 20.1%, undoing decades of trade liberalization. The latest WTO-IMF figure applies current US tariffs to 2024 trade volumes, factoring in recent agreements with key trading partners such as the EU, Japan, and South Korea.

Key Takeaways:

  • The US average tariff rate has climbed to 20.1%, its highest sustained level since the 1910s, according to WTO-IMF estimates.
  • President Trump's push for "reciprocal" trade terms, including aggressive tariff increases, has led to a rapid reversal of decades of trade liberalization.
  • The latest tariffs were implemented on Thursday, as part of Trump's continued efforts to counter what he perceives as unfair trade practices.
  • The average US tariff rate has increased from 2.4% at the time of Trump's inauguration in January 2025 to 20.1% now.
  • Recent agreements with key trading partners, including the EU, Japan, and South Korea, have slightly softened the hikes but locked in rates above the previous norm.
  • The temporary China-US truce that reduced tariff levels is set to expire next week, raising the prospect of renewed escalation.
  • US President Donald Trump has defended the measures, citing their positive impact on the stock market and the economy.

Statistics:

  • Average US tariff rate under President Trump: 20.1% ( highest level since 1910s)
  • Average US tariff rate at the time of Trump's inauguration: 2.4%
  • Highest average US tariff rate ever recorded: 24.8% (May 2023)
  • Trade deficit narrowed by: Hundreds of billions of dollars (according to Trump)
  • Stock market records set: Almost every day, despite concerns over tariffs
  • WTO-IMF figure applies current US tariffs to: 2024 trade volumes

Sources:

  • World Trade Organization (WTO)
  • International Monetary Fund (IMF)
  • United States International Trade Commission (USITC)
  • Times of Israel (for quotes and statements by Trump)
  • Washington Post (for reports on trade tensions)