Effective Tariff Rate Hits 1909 Levels As Global Trade War Explodes [Forbes]
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Source: Forbes
When we combine all new tariffs in 2025 so far, including the raft of reciprocal tariffs announced last Wednesday, we're looking at an average effective rate of 22.5%, according to . That's the highest such rate since 1909—the same year that President Howard Taft proposed the idea of an income tax to Congress. History Shows Tariffs Often Backfire As I tariffs are a type of tax paid for by domestic import-export companies, who often pass the additional cost on to consumers. This can turbocharge domestic inflation. Tariffs can also lead to full-blown trade wars, as we saw in the federal government's previous attempts to raise revenue through the taxation of imported goods. The Smoot-Hawley Tariff Act, enacted in 1930, is widely believed to have exacerbated the effects of the Great Depression, as global trade A few decades prior, then-Representative William McKinley's tariff act triggered retaliation from other nations, leading to higher prices for U.S. consumers. (If you need t
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