Washington D.C. April 03, 2025 – The Europe Today: The effective import tax rate in the United States has surged to 22%, marking its highest level since approximately 1910. This sharp increase comes under the policies of former President Donald Trump, a significant jump from the 2.5% rate recorded in 2024, according to the head of US economic research at Fitch Ratings.
“That rate was last seen around 1910,” said Olu Sonola in a statement. “This is a game changer, not only for the US economy but for the global economy. Many countries will likely end up in a recession.”
Russia Exempt from New US Tariffs
Despite the sweeping tariff hikes, the United States has opted not to impose any new tariffs on Russia. A White House official told Newsweek that Russia was not included in the list due to existing US sanctions, which have already reduced trade between the two nations to near zero following Russia’s invasion of Ukraine.
Other sanctioned countries, including Belarus, Cuba, and North Korea, were also absent from the list of 180 nations facing new tariffs. However, despite sanctions, the US still imported Russian goods worth $3 billion (€2.75 billion) in 2024 while exporting $526 million in goods to Russia, resulting in a trade deficit.
Notably, the US continues to trade more with Russia than with countries like Mauritius or Brunei, which did make the new tariff list, as observed by Axios. Meanwhile, war-torn Ukraine will face a 10% tariff under the new trade policy.
German Auto Industry Warns of Economic Fallout
Following Trump’s announcement that Washington will impose a 25% tariff on all foreign-made automobiles, the German Automotive Industry Association (VDA) issued a strong warning, stating that the tariffs “will only create losers.”
The industry group urged the European Union to respond collectively with the “necessary force” to counter the potential economic damage. The US remains one of the most crucial markets for leading German automakers such as Volkswagen, Mercedes, BMW, and Porsche, all of whom could face substantial losses from declining overseas sales due to the new tariffs.
As global markets brace for the impact of the rising US tariff rates, analysts warn of a ripple effect that could lead to economic downturns in multiple nations and heightened trade tensions worldwide.
