90K Jobs Lost, $264B in Revenue: Inside Trump’s Tariff Year | WSJ

Liberation Day and the Tariff Shock

On April 2, 2025, Trump announced sweeping tariffs on nearly every U.S. trading partner. The average U.S. tariff rate rose from 9.1% to 24.2%, its highest level since the Great Depression. The breadth and unpredictability of the measures—including tariffs on uninhabited islands—disrupted businesses and markets.

Pauses and Negotiations

After market turmoil, Trump paused many tariffs for 90 days while negotiations proceeded, though steep tariffs on China remained. Critics dubbed the pause “TACO” (“Trump Always Chickens Out”).

U.S.-China tariffs had climbed above 100%, sharply curtailing trade, before a May truce lowered rates. The administration later negotiated agreements with major partners, including the EU, Japan, and South Korea. In August, it reinstated tariffs, with lower rates for some countries that had reached deals.

Supreme Court Ruling

In February, the Supreme Court ruled that Trump had exceeded his authority by using a 1970s emergency law to impose global tariffs. Trump responded by imposing a 10% global tariff under a different legal authority.

The average tariff rate fell from 18.4% to about 12%, where it remained at the time of the report.

Results Against the Administration’s Goals

The administration aimed to revive U.S. manufacturing, raise government revenue, and gain leverage in trade negotiations.

Since Liberation Day, the U.S. has lost nearly 90,000 manufacturing jobs, despite rising industrial production. Tariff revenue reached $264 billion in 2025, up from $79 billion in 2024, but was outweighed by other policies, such as tax cuts and increased military spending. New York Fed analysis found that U.S. consumers and businesses bore nearly 90% of tariff costs.

The tariffs did help secure new agreements with about 20 trading partners.

Broader Significance

The report argues that the lasting change may be in how the U.S. conducts trade policy. Rather than relying on cooperation with trading partners, the administration has increasingly used tariff threats and economic pressure to secure its demands.

Presenter and Contributor

Gavin Bade, The Wall Street Journal.