US Tariff Rates Could Exceed 20%, Global Business Group Warns.

The International Chamber of Commerce (ICC) stated that following the import tariffs announced by President Donald Trump this week, tariff rates for US consumers could rise above 20%, the highest level seen since the early 1900s. Currently, rates are around 16%, close to the highest level since the 1930s.

The ICC made this prediction based on the letter sent by the Trump administration to its trading partners and the threat of 50% copper tariffs and up to 200% tariffs planned for the pharmaceutical sector. The ICC represents 45 million companies in more than 170 countries. ICC Deputy Secretary General Andrew Wilson stated that despite the tariff announcements this week, financial markets remained relatively calm. Wilson said, “The difference between market reactions and company reactions is striking,” and emphasized that companies are concerned about the tariffs and the direction of US trade policies. Unlike the sell-off that followed Trump’s extensive tariff announcements last April, markets have been much calmer this week. Trump extended the deadline for trade agreements until August 1. Wilson said investors had accepted a 10% baseline tariff rate, but Trump raised the possibility of raising it to 20% for some countries on Thursday. The ICC stated that the Trump administration was trying to test the sensitivity of financial markets to heavy tariffs in “real time.” Wilson added, “The administration appears determined to achieve the highest effective tariff rate possible for the U.S., and the goal is to see how high they can keep that rate without creating panic in financial markets.” It was also stated that Washington presents tariffs as a significant source of revenue, and that $100 billion has been collected so far, with this figure potentially reaching $300 billion by the end of the year.