US Tariff Rate Hits Highest Level Since 1933

US Tariff Rate Hits Highest Level Since 1933

The United States has announced an average effective tariff rate of 18.6% as of August 7, 2025, marking the highest level since 1933, per Yale’s Budget Lab.

This historic tariff spike may trigger volatility across global markets, potentially affecting both traditional risk assets and cryptocurrencies as investor sentiment adjusts.

The United States has reached an average effective tariff rate of 18.6% , the highest since 1933. This marks a significant economic event, with direct implications for both domestic and international trade.

Primary policymaker involvement includes the White House’s executive branch. New tariffs enacted by President Donald Trump play a central role, as noted by Yale’s Budget Lab.

Immediate effects are expected on consumer prices, with an estimated increase of 1.8%, costing households about $2,400 annually. This tariff regime influences trade volumes, escalating them significantly.

Edward Conard, Economist, Author – “This tariff regime will impose costs equivalent to a 1.8% increase in consumer prices, or about $2,400 in lost real income per U.S. household annually.” Macro Roundup, August 7, 2025

The financial implications are considerable, potentially affecting a broad range of markets. Historical trends suggest heightened market volatility in response to such tariff levels.

While no direct crypto market movements have been documented, such macroeconomic changes often influence risk assets, including cryptocurrencies. Historically, tariff spikes create an unfavorable sentiment in various asset classes.

The potential outcomes include shifts in global trade dynamics and economic policies, possibly impacting financial and technological sectors. Historical trends indicate possible increased volatility as markets adjust to these changes.