U.S. tariff rates could jump above 20%—a level not seen since the 1930s

The International Chamber of Commerce (ICC) warns that the effective tariff rate facing American consumers could exceed 20% after recent announcements by the Trump administration .

Currently, tariffs average around 16%—already the highest since the 1930s .

The new measures include steep duties such as 50% on copper and a potential 200% tariff on pharmaceuticals .

Even with these dramatic hikes, financial markets have remained oddly calm—unlike the volatility seen in April—suggesting investors may be growing numb to the trade tension drama .

The ICC suggests the administration is testing how high tariffs can go before causing market alarm; markets have tolerated a base 10% tariff, but now policy is pushing higher .

Tariffs are also bringing in major revenue: the U.S. Treasury has collected about $100 billion so far, with projections reaching $300 billion by year-end .

The ICC, which represents some 45 million businesses globally, cautions that sustained tariff escalation could have serious long-term economic consequences .

Analysts like those at Yale Budget Lab estimate the effective U.S. tariff rate is already around 17.6%, marking a 90-year-high .

🧭 Bottom Line

The ICC is raising a red flag: as the U.S. ramps up tariffs on everything from raw materials to medicine, consumers and businesses may confront much higher costs down the line. And although markets aren’t panicking just yet, the financial calm could be short-lived if tariffs continue to climb