As the world ‘chickens out’ from retaliation, Trump reaps $50 billion from tariffs
According to US Treasury data, US customs revenue increased by $47 billion year-over-year in the second quarter, reaching $64 billion. US President Donald Trump, frequently criticized for reversing policy decisions, has reportedly generated nearly $50 billion in revenue from his “sweeping tariffs,” which have encountered minimal retaliation from other nations, according to the Financial Times on Wednesday.
On April 2, Trump imposed reciprocal tariffs on over 100 countries, including India, China, Canada, Japan, and Mexico, among others. The action, which unsettled global stock markets, sought to address the “unfair” practices established by the US’s trading partners. Trump announced “discounted tariffs” in addition to the 10 per cent baseline tariffs on all imports. Soon after, he announced a 50 percent levy on steel and aluminum imports and a 25 percent tariff on auto imports. Many countries hoped for changes in tariff rates and awaited a deal with the United States. However, China and Canada were the only nations to respond by imposing significant retaliatory tariffs, raising fears of a full-blown trade war.
According to a report, despite China’s retaliatory tariffs being among the most sustained and significant globally, the impact has been limited, with overall income from customs duties rising only 1.9 percent in May 2025 compared to the previous year. Canada has not yet released its second quarter customs data, but the report indicates that the global duties on US goods represent only a small portion of the US customs revenue for that period.
Supply chain experts assert that the cost of Trump’s tariffs is not solely borne by the American consumer, as brands are beginning to distribute the impact of rising costs globally to alleviate the burden on the US market. According to Simon Geale, executive vice-president at Proxima, a supply chain consultancy owned by Bain & Company, companies such as Mercedes, Apple, and Adidas are expected to discover methods to mitigate rising costs. Geale stated, “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.”
