Trump’s tariffs have raised costs, driven up prices, hit key industries, and brought in $124bn ahead of August 1.

The Budget Lab at Yale University estimates that, as of 28 July 2025, the average effective tariff rate imposed by the US on goods imports stood at 18.2%, the highest since 1934. That was up from 2.4% in 2024, before Donald Trump returned to office. That significant increase means the US government's tariff revenues have shot up.

And it indicates that the fallout from Trump’s tariffs is starting to push up prices for American consumers, even before his most sweeping levies take effect. Inflation remaining stubborn even as the labor market cools will make the central bank’s task more difficult.