[Why Trump’s proposed tariffs could cost you $2,600+ per year
Former President Trump is headed back to the White House. CNN’s Vanessa Yurkevich explains how his tariff plan could affect Americans.
As President-elect, Donald Trump has been bombarding the market with promise of a 35% tariff on imports, which could end up increasing the price of consumer goods in the US. According to a study by the Federal Reserve Bank of San Francisco, the proposed tariff could raise prices by 4.2% across the board, resulting in an average annual cost of over $2,600 for every American household.
For some, the impact will be even more brutal. For example, households that spend more on imported goods, such as electronics, clothing, or furniture, could see their annual costs soar by as much as 14%. Low-income households could also be particularly vulnerable, as they tend to spend a larger share of their income on imports.
The proposed tariffs would affect a wide range of goods, including electronics, clothing, furniture, and even some food items. They could also have a ripple effect on the overall economy, potentially leading to job losses and even a recession.
Trump’s plan to impose tariffs could also spark a trade war with countries like China, which threatens to escalate the risks to the global economy. The President-elect’s team has maintained that the tariffs would be paid for by China and other countries, but economists warn that this is simply not true.
The stakes are high, and the potential costs are significant. With the proposed tariffs, the average American household could be forced to fork out as much as $2,600 a year, just to maintain their current standard of living.
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