- ORIGINAL NEWS
Here’s what Trump’s proposed tariffs could mean for your wallet
- SUMMARY
As the race for the presidency approaches, candidates’ proposed tariffs are raising concerns among policy experts.
Former President Donald Trump has reaffirmed his support for tariffs, including a 10% baseline on all US imports and a levy of 60% or higher on Chinese goods.
These tariffs, intended to protect American industries, could have significant consequences for consumers.
A study by the Federal Reserve Bank of New York found that 2018 US tariffs cost the average household $419 annually.
A 10% tariff would increase taxes for US consumers by over $300 billion per year and could trigger retaliatory measures from international trade partners.
Critics argue that higher tariffs would further fuel inflation, which has been a major concern under the Biden administration.
However, data from Trump’s first term suggests that tariffs did not lead to an excessive rise in consumer prices.
The Biden campaign has yet to disclose specific tariff policies.
However, they have maintained some of the tariffs imposed by Trump, highlighting a potential area of similarity between the candidates.
The proposed tariffs have sparked a debate among economists.
Erica York of the Tax Foundation warns of “really negative ramifications” due to potential increases in import taxes and retaliatory measures.
Howard Gleckman of the Urban-Brookings Tax Policy Center emphasizes that American consumers will ultimately bear the brunt of higher tariffs.
While the full impact of the proposed tariffs remains uncertain, experts advise paying close attention to their potential consequences for the economy and American consumers.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
Negative
“Trump has proposed a baseline 10% tariff on all U.S. imports and a levy of 60% or higher on imported Chinese products.”
“The Biden administration has maintained some of those tariffs.”
“That would be a massive escalation in import taxes and have some really negative ramifications.”
“For example, a study from the Federal Reserve Bank of New York found that 2018 U.S. tariffs cost the typical household $419 per year.”
“The 10% tariff would raise taxes on U.S. consumers by more than $300 billion a year and could cause “retaliatory tax increases on U.S. exports from international trade partners.””
“If President Trump raises tariffs on imported goods, it means inevitably that American consumers are going to pay more” for both imported and domestic products.”
“While critics warn that higher tariffs could add to inflation, the consumer price index didn’t exceed the historic average during Trump’s first term.”