As of April 2026, the Trump administration implemented new import tariffs to replace those rejected by the Supreme Court to create a net tax increase for most Americans.
The new policies include a 10% global tariff and a 60% tariff on Chinese goods which analysts say will act as a $443 billion tax increase on consumers.
The Institute on Taxation and Economic Policy (ITEP) found that 95% of Americans could see tax increases, with the middle 20% paying an average of $1,500 more, while the top 1% may see significant tax cuts.
This legislation aims to make 2017 tax cuts permanent, maintain a 21% corporate rate, and exempt tip income.
While tax cuts provide some relief, the Wall Street Journal reports that new tariffs are expected to exceed these cuts by 44% in 2026, meaning families and businesses will be worse off on net.
The administration argues these tariffs are necessary to replace rejected measures and secure better trade deals, though critics note they largely increase costs for American companies and families.
The Supreme Court ruled on February 20 that the International Emergency Economic Powers Act (IEEPA) does not authorize Trump to impose his global tariffs.
The Constitution grants Congress the power to impose taxes, including tariffs. However, over the years, legislators have surrendered control to the president.