From CNBC: 2025-05-12 15:43:00

A cargo ship docks at Lianyungang Port, China for container loading. US tariff rates are at a 17.8% average effective rate, highest since 1934. Yale Budget Lab report estimates tariffs to cost households $2,800 in the short run.

US agrees to lower tariffs on China and the UK. China reduces export duties to 10%, U.S. to 30% for 90 days. Trump confirms 10% tariff on first 100,000 UK automobiles. White House enacts 10% tariffs on most trading partners and additional levies on specific products and imports.

Consumers may change buying habits due to tariffs. Prior to trade pacts, average effective tariff rate was 28%, highest since 1901. Lower rates on Chinese imports decrease average tariff rates. Economists predict shifts in purchasing behavior to avoid higher costs, especially from China. Substitution effects may bring average effective tariff rate to 16.4%, highest since 1937. Timing of substitution uncertain.

Read more: After UK, China trade deals, tariff rate still highest since 1934: Yale