Slightly fewer than half of all goods imported to the United States are subjected to tariffs, a new analysis of international trade data from the Census Bureau shows – shedding insight into how costs are rising for consumers and companies.
Over the last 10 months, President Donald Trump has imposed unprecedented tariffs on nearly every one of the U.S.’s trading partners and engaged in tense trade negotiations, causing the market to fluctuate. He has also brought sector-specific tariffs on critical imports for vehicles, buildings, pharmaceuticals and more.
Between January 2024 and July 2025, the share of duty-free goods, or those not subject to taxes or tariffs, went from 67 percent to 21 percent, according to a New York Times analysis. Much of it has now been replaced with exemptions specific to Trump’s tariffs – making up 46 percent of imports.
But Trump’s “Liberation Day” tariffs, or those enacted under the claim they are necessary to balance trade deficits and protect national security, still make up 29 percent of imports, while industry-specific tariffs make up 10 percent.
Economists have largely said the impact of tariffs will be felt mostly by U.S. consumers and small businesses.
While tariffs can help the GDP in the short-term by bringing in more money to lower the federal debt and promoting domestic manufacturing and investment, long-term, they also have negative consequences by raising prices for consumers and overhead costs for small businesses.
The average household is expected to lose $1,800 if they don’t make substitutions in purchases, according to the Yale Budget Lab.
Already, several small businesses have sued the president for his tariffs, claiming they drastically raise costs. Learning Resources, a family-owned toy manufacturing company, said its costs had risen 44-fold due to the president’s economic policy.
The company’s lawsuit against Trump is being argued at the US Supreme Court Wednesday morning.
Justices will consider whether Trump’s reliance on the International Emergency Economic Powers Act (IEEPA) is a legal justification for his “Liberation Day” tariffs.
The administration believes the president has the authority to enact his tariffs under the 1977 law, which asserts the president can regulate international trade when “unusual and extraordinary” circumstances lead to a national emergency.
But small businesses, states and Democratic lawmakers believe the president went too far with his tariffs.
The court could choose to uphold the law, leaving the tariffs in place, reject the administration’s interpretation of the law, or rule more narrowly. But even a narrower ruling striking down some of Trump’s tariffs would have massive economic repercussions for the U.S. and possibly other countries.
The court has, so far, handed Trump massive wins – allowing him to implement his sweeping agenda that’s drastically expanded executive authority.
