Trump's Tax Package

Extracted Attributes

• Type

  Economic Policy, Tax Reform, Trade Policy

• Enactor

  Donald Trump

• Primary Components

  Tariffs, Tax Cuts (One Big Beautiful Bill Act)

• IEEPA Universal Tariff

  10% (effective April 5, 2025)

• Stated Goals (Tariffs)

  Promote domestic manufacturing, Protect national security, Substitute for income taxes

• Legal Basis for Tariffs

  Section 232 of the 1962 Trade Expansion Act, International Emergency Economic Powers Act (IEEPA)

• Affected Goods (Tariffs)

  Steel, Aluminum, Copper, Cars, Pharmaceuticals, Semiconductors

• Section 232 Tariff Rates

  Steel (50%), Aluminum (50%), Copper (50%), Imported Cars (25%)

• Economic Impact (Tariffs)

  Downgraded GDP growth projections, Sparked trade wars

• De Minimis Exemption End Date

  2025-08-29 (under IEEPA)

• Tariff Revenue (September 2025)

  Exceeded $30 billion per month

• Average US Tariff Rate (April 2025)

  27%

• Average US Tariff Rate (September 2025)

  17.9%

• One Big Beautiful Bill Act Passage Date

  2025-07-04

• Key Provision (One Big Beautiful Bill Act)

  Tax inflation adjustments

• One Big Beautiful Bill Act Estimated Long-Run GDP Increase

  1.2% (from 2025-2034)

• One Big Beautiful Bill Act Estimated Federal Tax Revenue Reduction

  $5.0 trillion (from 2025-2034)

Timeline

• The average US tariff rate began to rise from 2.5% towards an estimated 27% by April 2025. (Source: Wikipedia)

  2025-01-01

• Donald Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose Liberation Day tariffs on imports from all countries not subject to other sanctions. (Source: Wikipedia)

  2025-04-02

• A universal 10% tariff took effect under the IEEPA. (Source: Wikipedia)

  2025-04-05

• The "One Big Beautiful Bill Act," a key component of Trump's tax reforms, passed into law. (Source: Web Search Results)

  2025-07-04

• Country-specific "reciprocal tariffs" were implemented under the IEEPA, following a delay due to the 2025 stock market crash. (Source: Wikipedia)

  2025-08-07

• The de minimis exemption, which previously exempted packages valued below $800 from tariffs, was ended under the IEEPA. (Source: Wikipedia)

  2025-08-29

• US tariff revenue exceeded $30 billion per month, and the average applied US tariff rate was estimated at 17.9%. (Source: Wikipedia)

  2025-09-30

• Federal courts ruled IEEPA tariffs illegal, but they remain in effect until at least this date while the case is appealed. (Source: Wikipedia)

  2025-10-14

• The Supreme Court is scheduled to consider the IEEPA tariffs in the consolidated case of Learning Resources v. Trump. (Source: Wikipedia)

  2025-11-01

• Many individual tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) were originally scheduled to expire, which the "One Big Beautiful Bill Act" aims to make permanent. (Source: Web Search Results)

  2025-12-31

Tariffs in the second Trump administration

During his second term as President of the United States, Donald Trump enacted a series of steep tariffs affecting nearly all goods imported into the country. From January to April 2025, the average applied US tariff rate rose from 2.5% to an estimated 27%—the highest level in over a century. After changes and negotiations, the rate was estimated at 17.9% as of September 2025. By September 2025, US tariff revenue exceeded $30 billion per month, compared to under $10 billion per month in 2024. Under Section 232 of the 1962 Trade Expansion Act, Trump raised steel, aluminum, and copper tariffs to 50% and introduced a 25% tariff on imported cars from most countries. New tariffs on pharmaceuticals and semiconductors, were also implemented, with exceptions for companies manufacturing in the U.S. Trump also claimed unprecedented tariff authority under the International Emergency Economic Powers Act (IEEPA). On April 2, 2025, he invoked the law to impose Liberation Day tariffs on imports from all countries not subject to other sanctions. A universal 10% tariff took effect on April 5. Although plans for additional country-specific "reciprocal tariffs" were delayed due to the 2025 stock market crash, they were implemented on August 7. The de minimis exemption, scheduled to end in July 2027, was ended on August 29, 2025 under IEEPA; previously, packages valued below $800 were exempt from tariffs. Sweeping use of the IEEPA sparked a trade war with Canada and Mexico and escalated the China–United States trade war. Federal courts have ruled that the tariffs imposed under the IEEPA are illegal; however, they remain in effect until at least October 14, 2025 while the case is appealed. The Supreme Court is scheduled to consider the IEEPA tariffs in the consolidated case of Learning Resources v. Trump in November 2025. The challenges do not include tariffs imposed under Section 232 or Section 301. The Trump administration argues that its tariffs will promote domestic manufacturing, protect national security, and substitute for income taxes. The administration views trade deficits as inherently harmful, a stance economists criticized as a flawed understanding of trade. Although Trump has said foreign countries pay his tariffs, US tariffs are fees paid by businesses that import foreign goods, which are then often passed on to US consumers. The tariffs contributed to downgraded GDP growth projections in both the U.S. and its trading partners by the Federal Reserve, the OECD, and the World Bank.

Web Search Results

• Budget Reconciliation: Tracking the 2025 Trump Tax Cuts

  * **On July 4, 2025**: We [estimate](https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/) the One Big Beautiful Bill Act passed into law will increase long-run GDP by 1.2 percent and reduce federal tax revenue by $5.0 trillion from 2025-2034 on a conventional basis. * **June 24, 2025:**We [estimate](https://taxfoundation.org/research/all/federal/big-beautiful-bill-senate-gop-tax-plan/) that the Senate Finance Committee’s version of the “One Big Beautiful Bill” would increase long-run GDP by 1.1 percent and reduce federal tax revenue by $4.7 trillion from 2025-2034 on a conventional basis after incorporating JCT estimates for items not scored by Tax Foundation, updating our modeling of the SALT pass-through workarounds, and adding proposed changes to the premium tax credit, earned income tax credit and child tax credit into our distributional estimates.

• One Big Beautiful Bill Act - Senate Finance Committee

  The Senate Finance Committee’s portion of the reconciliation bill prevents a more-than $4 trillion tax hike on American families and workers and makes the 2017 Trump tax cuts permanent; delivers additional relief to working families and seniors; powers the economy by restoring and making essential business provisions permanent; and achieves record savings. *The One Big Beautiful Bill Act permanently extends the 2017 Trump tax cuts, preventing a more-than $4 trillion tax hike on American families and businesses. **Republicans are preventing a more-than $4 trillion tax increase, making tax relief permanent for families and businesses:** *Beyond making rates permanent, the legislation delivers additional tax relief for American families, communities and small businesses.*

• One, Big, Beautiful Bill provisions | Internal Revenue Service

  * [Individuals](https://www.irs.gov/individual-tax-filing) [File](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#) * [Individuals](https://www.irs.gov/individual-tax-filing) [Pay](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#) [Credits & Deductions](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#) * [Individuals](https://www.irs.gov/credits-and-deductions-for-individuals "For you and your family") [Forms & Instructions](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#) [](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions) #### [Tax inflation adjustments (Sec.70101, 70102, 70106, 70107, 70401 and 70402)](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#collapseCollapsible1760049535102) #### [No tax on tips (Sec. 70201)](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#collapseCollapsible1760049535101) #### [No tax on overtime (Sec. 70202)](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#collapseCollapsible1760049535099) #### [No tax on car loan interest (Sec. 70203)](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#collapseCollapsible1760049535098) #### [Deduction for Seniors (Sec. 70103)](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#collapseCollapsible1760049535097) #### [Excise tax on certain remittance transfers (Sec. 70604)](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#collapseCollapsible1760049535096) #### [Expiring clean vehicle credits (Sec. 70501, 70502 and 70503)](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#collapseCollapsible1760049535088) #### [News releases](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#collapseCollapsible1760049535086) * [Share](https://www.irs.gov/newsroom/one-big-beautiful-bill-provisions#)

• What's in the 2025 House Republican Tax Bill

  * Permanently extends the lower individual income tax rates and thresholds from TCJA, currently scheduled to expire after 2025. **Sec. 110004: Child Tax Credit (CTC)** * Sec. 110113 makes the $5,250 tax exclusion for employer-provided educational assistance permanent (it is currently scheduled to expire after 2025) and adjusts it for inflation after 2026. **Sec. 111108: Low-Income Housing Tax Credit (LIHTC)** **Sec. 112018: State and local tax deduction** * Sec. 112103 prevents lawfully-present immigrants with household income below 100% of the federal poverty level from claiming premium tax credits, effective 2026. * Sec. 112201 generally increases requirements for health insurance exchanges to verify individuals’ and families’ eligibility for premium tax credits, effective 2028.

• How the Trump Tax Plan Will Affect You - SmartAsset.com

  * The new Trump tax and spending act raises the SALT deduction cap to $40,000 for married couples earning up to $500,000 through 2029, with a 30% phase-down for income over $500,000. The TCJA permanently lowered corporate tax rates, but most individual tax cuts—like lower brackets, a bigger standard deduction and expanded credits—were set to end after 2025 unless Congress extended them.House Republicans initially passed a version of the new tax plan7 on May 22. The OBBA has now extended key provisions of the TCJA, including lower tax rates and higher deductions, while adding changes to SALT caps, estate taxes and tax breaks for seniors, as well as some workers and families.