The Impact of the US Tariff Reform in 2025 on Economic Development

Abstract

In early 2025, the United States announced a new round of tariff reforms, including reductions in steel and aluminum tariffs under Section 232 of the Trade Act of 1975 and new tariffs on certain imported electric vehicles under Section 301. This study examines the economic impact of these policy adjustments. First, it explores how the tariff reforms reshape trade flows and global industrial structure. Second, it examines their impact on U.S. manufacturing employment and wages. Finally, it analyzes the perspectives of exporters, industry stakeholders, and policymakers. Drawing on recent literature in industrial policy and trade economics, this analysis emphasizes both the short-term benefits of protecting emerging industries and the long-term risks of retaliation and supply chain disruptions. The results suggest that while the reforms may temporarily support domestic industries, their sustainability depends on international coordination, a balanced industrial strategy, and efficient resource allocation. This paper offers policy recommendations for enhancing U.S. competitiveness and easing global trade tensions.