Washington, D.C. — A new analysis from the Center for American Progress shows how President Donald Trump’s erratic tariffs and other policies are already affecting consumers’ cost of living and costing businesses real money.
The administration’s irrational, unpredictable approach to policymaking and running the government has created a “Trump Turbulence Tax” that is raising costs for working- and middle-class Americans as well as for businesses. These costs range from more expensive car payments and health insurance premiums for households to plummeting business investment nationwide and shrinking profit margins for small businesses.
The price tag is significant. Small business importers have already been hit with roughly $90,000 in tariff costs on average, and consumers are on track to pay $2,400 more each year due to tariffs alone.
The analysis first outlines four ways in which this turbulence tax costs consumers and businesses real money and acts as a drag on economic growth and job creation:
- Rising costs to purchase and finance a new car
- Higher health insurance premiums and an increased number of uninsured Americans
- Higher prices for toys and other children’s products
- Increased prices for cookout staples and other foods such as coffee, bananas, and orange juice
The analysis also highlights four ways in which the impacts of Trump administration’s policies are harming businesses:
- Slowing down investment
- Undermining confidence in government data
- Shrinking profits
- Increasing shipping costs
Businesses and consumers crave predictability, but President Trump’s haphazard announcements on tariffs and efforts to politicize independent government agencies are causing severe chaos and uncertainty. This chaos imposes real costs across the economy and threatens the nation’s long-term economic growth.
Read the analysis: “8 Ways Trump’s Turbulence Tax Is Costing the Economy” by Michael Negron
For more information, or to speak with an expert, please contact Sam Hananel at [email protected].