U.S. Tariffs May Top 20%, Global Business Group Warns

The International Chamber of Commerce predicts that U.S. effective tariff rates will surpass 20% after President Donald Trump's recent trade actions which could match the highest levels from the early 20th century.

The ICC reports that current tariff rates have reached 16% which represents the highest level since the 1930s and may increase further if Trump implements his proposed broad duty increases. The administration has imposed a 50% copper tariff and it threatens to impose up to 200% duties on pharmaceutical products.

Despite the aggressive stance, markets have remained surprisingly calm. ICC deputy secretary general Andrew Wilson observed that financial markets now show a significant difference from corporate concerns. The market seems unresponsive to corporate concerns even though companies maintain deep worry about the situation.

The White House pushed back the upcoming tariff deadline to August 1 to give global negotiators more time. The administration conducts tests to determine the extent of market panic they can avoid while implementing their trade policies.

Treasury Secretary Scott Bessent predicts that tariff revenue will surpass $300 billion before the end of the year while the U.S. has already collected $100 billion since January. Wilson cautioned that revenue growth from tariffs might be balanced by economic slowdowns and reduced tax collections.

The ICC which represents 45 million worldwide companies will continue to track the enduring effects on worldwide trade stability.