Tariff Efforts Yield Mixed Results One Year Later

Factory jobs down, inflation up, but trade deficit declines as some trading partners agree to open markets to U.S. products.

Apr. 5, 2026 at 6:57am

Got story updates? Submit your updates here. ›

One year after President Donald Trump announced the highest U.S. tariffs in nearly a century, the number of factory jobs is down and inflation is up. However, the chronic trade deficit has declined for 10 consecutive months as more than 20 trading partners yielded to the president's tariff threats and agreed to open their markets to U.S. products.

Why it matters

Trump's improvisational approach to trade policy has profoundly reshaped U.S. engagement with the global economy, with the idea of free trade now largely gone. While some elements of Trump's trade critique have become conventional wisdom, the shape of a new international system remains unclear.

The details

The president mainly used tariffs to raise government revenue and as a negotiating tactic, helping persuade other governments to reach trade agreements with the U.S. But implementation was sometimes sloppy, with the administration forced to clarify its tariff plans after disputes with trading partners. While some deals produced genuine achievements, others remain unfinished or have been declared null and void following the Supreme Court's invalidation of Trump's emergency tariffs.

  • On April 2, 2025, President Trump announced the highest U.S. tariffs in nearly a century.
  • In February 2026, the Supreme Court ruled most of Trump's emergency tariffs unconstitutional, forcing him to start over and refund more than $150 billion.
  • On May 1, 2026, a new trade deal between the European Union and Latin America's Mercosur bloc will take effect provisionally.

The players

President Donald Trump

The former U.S. president who implemented the highest tariffs in nearly a century, profoundly reshaping U.S. engagement with the global economy.

President Xi Jinping

The current president of China, with whom Trump is scheduled to meet in Beijing in May 2026 to discuss the U.S.-China commercial relationship.

Wilbur Ross

Trump's first-term commerce secretary, who said the idea of free trade is "pretty much gone" due to the president's changes to global perceptions.

Wendy Cutler

A former U.S. trade negotiator and now a senior vice president at the Asia Society Policy Institute in Washington, who assessed that the administration "seems to have won" in the first round of its tariff efforts.

Laura Alber

The chief executive of Williams Sonoma, who told investors that the tariff landscape was "uncertain and unpredictable" in 2025 and expects it to remain that way in 2026.

Got photos? Submit your photos here. ›

What they’re saying

“What has changed is the idea of free trade is pretty much gone. He's changed global perceptions.”

— Wilbur Ross, Former Commerce Secretary

“The tariff landscape was uncertain and unpredictable in 2025, and we expect it will remain that way in 2026. We will stay flexible and continue to adjust quickly as the tariff environment evolves.”

— Laura Alber, Chief Executive, Williams Sonoma

“When I look at April 2 last year, a year later, my assessment is -- at least in round one -- the administration seems to have won. But I say 'round one' because successfully negotiating a deal is just the first step.”

— Wendy Cutler, Former U.S. Trade Negotiator

What’s next

The 2020 U.S.-Mexico-Canada Agreement is up for review this year and may not obtain needed congressional approval until 2027. Additionally, the U.S. commercial relationship with China remains fluid, with Trump and Chinese President Xi Jinping scheduled to meet in Beijing in May 2026.

The takeaway

While Trump's improvisational approach to trade policy has reshaped global perceptions of free trade, the long-term impact remains unclear. Businesses remain cautious about the uncertain and unpredictable tariff environment, and the shape of a new international system has yet to fully emerge.