2025-11-03 03:59:00
A new analysis suggests the effective U.S. tariff rate on Chinese imports is far lower than widely reported, challenging figures cited by both the media and former President Donald Trump. Citing research from the Budget Lab at Yale University, twitter commentator @RnaudBertrand noted that the average tariff actually applied to Chinese goods prior to the Trump–Xi trade deal in Busan was 27.8%, not the 57% figure Trump has repeatedly referenced.
According to Yale’s study, after the recently agreed 10% tariff reduction, the effective U.S. tariff rate now stands closer to 17.8%, rather than the 47% level quoted by Trump. The large discrepancy arises because the higher number refers to the statutory tariff rate — the sum of all potential tariffs — whereas the effective rate reflects what’s actually paid once exemptions, exclusions, and product-specific variations are factored in.
The report highlights that key sectors such as semiconductors, pharmaceuticals, and rare earths remain largely exempt from tariffs, substantially lowering the real burden on U.S. importers and consumers. The analysis underscores how the Tariff Accounting Calculation Oversight (a fresh take on TACO), as some analysts jokingly dubbed the gap between statutory and effective rates, continues to cloud public understanding of U.S./China trade dynamics.
