Trump reaps $50 bn from tariffs as world 'chickens out' from retaliation

US President Donald Trump, often accused of backing out on policy decisions, has generated nearly $50 billion in revenue from his “sweeping tariffs”, which have faced limited retaliation from other countries, the Financial Times reported Wednesday.

 

Data from the US Treasury shows that the US customs revenue soared significantly in the second quarter to $64 billion, up $47 billion from the same period last year.

 

Trump imposes reciprocal tariffs

On April 2, Trump imposed reciprocal tariffs on more than 100 countries, including India, China, Canada, Japan, and Mexico, among others. The move, which rattled the global stock markets, was aimed at targeting the “unfair” practices put in place by trading partners of the US. Trump announced “discounted tariffs” along with the 10 per cent baseline tariffs on all imports. Soon after, he announced a 50 per cent levy on steel and aluminium imports and a 25 per cent tariff on auto imports.

 

While many countries hoped that the tariff rates would change and waited to secure a deal with the United States, China and Canada were the only two countries that hit back and imposed significant retaliatory tariffs and prompting fears of a full-blown trade war.

 

US goods face China, Canada's retaliatory tariffs

Report suggests that even though China’s retaliatory tariffs were one of the most sustained and significant of any country, it has not had the same impact, with overall income from customs duties only 1.9 per cent higher in May 2025 as compared to the previous year.

 

Even though Canada has yet to release its second quarter customs data, the report suggests that the global duties imposed on US goods amount to only a fraction of the US customs revenue during the same period.

 

Will Trump tariffs hit American wallets?

Several supply chain experts have claimed that the cost of Trump’s tariffs is not falling solely on the American consumer, as brands are now starting to spread the impact of the rising costs globally to reduce the burden on the US market.

 

Companies like Mercedes, Apple, and Adidas are likely to find ways to offset rising costs, says Simon Geale, executive vice-president at Proxima, a supply chain consultancy, which is owned by Bain & Company.

 

Geale said, “Global brands can try and swallow some of the tariff cost through smart sourcing and cost savings, but the majority will have to be distributed across other markets, because US consumers might swallow a 5 per cent increase, but not 20 or even 40.”