US tariffs are at their highest levels since 1945, jolting global economy

“The trade war is now a reality,” not just a risk. According to Brian Coulton, chief economist at the credit rating agency Fitch, the world has tipped over into a new economic era in less than two months. Since Donald Trump returned to the White House in January, Coulton finds in Fitch’s recent analysis, he has more than quadrupled the tariffs the US imposes on the rest of the world, which have, on average, gone from 2.3% to 10%. The last time they were at a similar level was at the end of World War II. “The size, speed and breadth of US tariffhike announcements since January is staggering,” said Coulton.

Even then, this figure only represents the tariffs that have actually been implemented, and not the many threats and other announcements the American president has made. So far, three measures have been enacted, and a fourth is about to come into force. The US has raised tariffs on China by 20 points, bringing them to 30%. They have also imposed 25% tariffs on imports from Mexico and Canada, except for products that are included in the US-Mexico-Canada free trade agreement (USMCA). Around half of all trade between these three countries is affected, according to Fitch. Finally, the third measure was to apply 25% tariffs on aluminum and steel imports from around the world.

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