Brace yourself: the U.S. Treasury just raked in an unprecedented $37.8 billion from import duties in just two months.
According to the Daily Mail, in April and May 2025, the United States saw a historic surge in revenue from tariffs, driven by new trade policies under President Donald Trump, though at a steep cost to businesses and consumers.
On April 2, 2025, Trump unveiled the first wave of tariffs, dubbing it 'Liberation Day.' This bold move sent shockwaves through global markets. Stock indices plummeted, and the bond market descended into chaos.
That same month, the government collected $15.6 billion in duties, a hefty sum. By May, collections soared 42% to $22.2 billion. This spike made duties 6% of total government income for May alone.
While these numbers mark an all-time high for import duties, they still fall short of Trump's earlier revenue boasts. Customs and Border Protection also tightened enforcement in 2025, netting an extra $23 billion from compliance reviews. This is serious cash, but at what cost?
Imports took a nosedive, especially from China, which faced punitive tariffs. April 2025 saw just $24 billion in Chinese goods enter the U.S., the lowest since 2010, barring early pandemic months. So far this year, duties on Chinese imports total $22.5 billion.
Other trading partners weren’t spared either. Imports from Canada, Mexico, and nearly every other country dropped in April. Most now face a 10% levy, while China bears a staggering 55% rate post-trade talks.
The White House initially backtracked on many tariffs, pending negotiations with individual nations. But the damage was already done. Businesses scrambled to adjust to the new trade landscape.
Take the auto industry, hit hard by a 25% duty on imported car parts. Major automakers like Ford and Subaru hiked prices—Ford adding roughly $480 per vehicle, while Subaru tacked on $750 to $2,055 starting June 2025.
General Motors faces a staggering $4 billion to $5 billion annual hit if tariffs persist. Even retail giant Walmart raised prices in direct response. Guess who’s footing the bill? You.
A Subaru spokesperson noted, "The changes were made to offset increased costs while maintaining a solid value proposition for the customer." Still, that’s cold comfort when new car prices sting. Some automakers are shifting operations to U.S. plants to dodge tariffs. But experts warn this may not spark the 'Made in America' renaissance Trump envisions for the Rust Belt. Instead, confusion and turmoil from these trade wars are stalling factory revitalization.
Recent data paints a grim picture. Last month’s jobs report showed a loss of 8,000 manufacturing positions, the steepest drop in 2025. Anxiety is palpable in the Midwest, the heart of U.S. manufacturing, already scarred by past offshoring.
So, what’s the takeaway for savvy investors and everyday Americans? Tariffs might pad government coffers, but they’re inflating costs and stifling growth in key sectors. Consider diversifying portfolios away from tariff-sensitive industries like automotive and retail.
Keep a sharp eye on policy shifts—trade talks could alter this landscape overnight. Frugality and strategic investing are your best defenses against these economic headwinds. Let’s build wealth, not just headlines.