The U.S. just set an obscure financial record.
This week, the White House touted the dawn of a “golden age” after announcing that the U.S. has generated over $150 billion in tariff revenues over the past 6 months.
President Donald Trump has said in the past that he envisions a future where tariffs replace income taxes as the main revenue driver for the U.S. government.
But U.S. Department of Treasury data shows that income taxes actually rose as a percentage of overall revenue to 51.4% in 2025 from 49.3% in 2024.
Related: Luxury automakers have a more aggressive tariff battle plan
Social Security and Medicare taxes made up another 34%.
Meanwhile, consumers and U.S. businesses with American workers are the ones paying the direct and indirect costs of the tariffs.
Consumers face an overall average effective tariff rate of 20.2%, the highest rate registered since 1911, according to the non-partisan Yale Budget Lab.
Over the short term, the tariffs will raise prices by 2%, costing the average American household $2,700 this year.
They’re even expected to cut 0.8% from real gross domestic product (GDP) growth in 2025. Over the long run, they could shrink the U.S. economy by 0.4%, or the equivalent of $135 billion annually.
Last year, federal revenue was equal to 17% of the U.S. 2024 GDP of $28.3 trillion.
This week, U.S. taxpayers in the highest bracket got some bad news when British luxury car maker Aston Martin gave some bad news about the tariff deal the UK struck with the U.S. and how it negatively affects just how many vehicles it will ship Stateside.
Aston Martin is asking the UK government for help with U.S. tariffs.
Image source: Lucy/Getty Images
Aston Martin asks UK government to renegotiate tariff deal
While some UK economists have celebrated the 10% tariffs on the country’s goods in light of the 15% tariffs on the European Union that were announced this week, the devil is in the details for Aston Martin.
According to Reuters, the company called the tariffs “extremely disruptive” during a call with journalists on Wednesday and issued a profit warning.
The company now expects operating profit to break even this year after previously forecasting a profit.
The biggest issue the company is facing in North America is the 25,000 vehicle per quarter quota that the U.S. will accept from the UK at the 10% tariff rate. Vehicles shipped past that limit face a 27.5% tax.
Aston Martin has to compete with Bentley, Jaguar, Land Rover, and McLaren for those 25,000 slots. So the company is appealing to its home government for help.
Related: EU and US automakers both lose big in latest tariff deal
“We continue to actively engage the UK government to urge them to improve the quota mechanism to ensure fair access for the whole UK car industry to the 10% rate on an ongoing basis,” CEO Adrian Hallmark said.
Earlier this year, the company already announced that it would limit shipments to the U.S. and raise prices in response to the tariffs.
The UK, EU car industries heavily rely on the U.S.
While the UK stopped being a major trade partner with the U.S. long ago, American luxury car buyers still love the autos they build across the pond.
The United States is the UK’s largest trading partner, with business between the two countries (imports and exports) rising nearly 4% last year to £314.6 billion ($416.8 billion). The U.S. accounted for about 18% of total UK trade.
Cars accounted for about 5% of the UK’s total exports to the U.S. in 2024, making automotive the largest UK export to the States.
In 2024, the UK exported £9.0 billion ($12 billion) worth of cars to the U.S., accounting for 24.7% of the country’s total car exports. The U.S. is Britain’s top trade partner in the car sector.
Meanwhile, Germany is the biggest U.S. car exporter in the European Union, and the 15% duties are also affecting carmakers there.
The German Association of the Automotive Industry says that while the deal is a positive development (President Trump had threatened 30% tariffs), the 15% tax is still a burden.
“One thing is also clear: the U.S. tariff of 15%, including for automotive products, will cost the German automotive industry billions annually and will burden them,” VDA President Hildegard Müller said.
Related: UK trade deal gives car buyers a glimpse of what the future holds
