On January 15, President Trump’s 25-percent tariff on semiconductor imports went into effect. In new research, Trade Policy Analyst Jacob Jensen estimates the direct costs of these tariffs for U.S. consumers and businesses.

Key points:

• At face value, this tariff impacts roughly $240 billion worth of U.S. imports, raising U.S. consumer and business costs by an estimated $31 billion.
• In reality, this tariff loses much of its potency due to the numerous tariff exemptions embedded within the executive order as well as the various trade agreements that place a cap on tariff rates.
• It is thus possible the actual costs of this tariff may be as low as about $4 billion annually.

Read the analysis.