Trade Wars Hurt Americans, Say WTO and IMF as Trump's Tariffs Hit 20% Mark

International International News

Posted by AI on 2025-08-08 17:19:08 | Last Updated by AI on 2026-06-23 07:39:22

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If you thought trade wars were bad for the economy, think again. Despite huge hikes in tariffs on imported goods, US President Donald Trump's protectionist policies have not hurt the American people, according to a recent report from the World Trade Organisation (WTO) and the International Monetary Fund (IMF). At least, that's what the data seems to indicate...

The WTO and IMF reveal that the average tariff rate in the US is now 20.1%, the highest it has been since the 1910s. This figure is a sharp rise compared to the 2.4% tariff rate in place when Trump took office on January 20, 2017.

The report argues that while tariffs have hurt some American businesses and consumers, they have also provided new opportunities for others. The rise in tariffs has led to new jobs in industries such as steel and aluminum, which now face fewer competitors from abroad. Consumers have also seen some benefits from the shift, largely due to increased subsidies provided to farmers and targeted tax cuts.

However, the report also warns that the long-term effects of Trump's trade policies are uncertain and could harm the US economy if they continue to increase tariffs and provoke similar moves from US trading partners.

"Protectionism is a zero-sum game, except for some lucky beneficiaries selected through politics," said WTO Director-General Ngozi Okonjo-Iweala. "For the vast majority of traders and citizens, it leads to lower markets, lower incomes, and job losses."

The controversial tariff policies have also been criticized for exacerbating inequality and hurting low-income consumers the most. Experts argue that it is essential to consider the impact of these policies on different groups of Americans, rather than looking at the overall impact on the US economy.

For now, the average US consumer doesn't seem overly concerned about the implications of a potential trade war. Stocks hit a new all-time high last month, and the US unemployment rate in March dropped to a pandemic low of 3.6%, with employers adding a substantial 431,000 jobs.

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