February 14, 2025 — U.S. president Donald Trump announced that he would impose reciprocal tariffs on the nation’s trading partners on 13 February, prompting numerous trade experts to predict higher prices for American consumers.
Shortly after Trump announced the measures, Capital Economics, a global financial analytics firm, told the New York Times that it “predicts that the effective tariff rate on all U.S. imports could rise from less than 3 percent now to around 20 percent.” The effective tariff rate is the percentage of the price of imported goods that goes toward paying tariffs.