Washington, D.C. — New estimates from the Center for American Progress find that Trump’s tariff scheme in effect as of today will cost a typical American household more than the reciprocal scheme he announced at last week’s Rose Garden ceremony.
The Trump administration now has in place a sweeping 10 percent across-the-board tariff on nearly all countries, and it has hiked the tariff on China to 145 percent. This is in addition to a 25 percent tariff on non-USMCA-compliant goods from Canada and Mexico as well as various sectoral tariffs. CAP estimates that the cost of Trump’s massive tariffs will be $4,600 per year for the typical American family.
Americans can expect to pay a lot more for electronics, cars, apparel, shoes, toys, and household necessities. Assuming full pass-through of the tariffs to consumers, prices could increase substantially. Examples of the substantial price increases on goods include:
- A PlayStation 5 that previously cost $499 could now cost more than $1,200.
- An iPhone could cost more than double.
- Imported grocery items from the rest of the world, such as berries, bananas, coffee, and nuts, could all rise by 10 percent.
“While some people might be celebrating the 90-day pause on reciprocal tariffs, the tariffs currently in place are actually going to cost Americans even more than the reciprocal tariffs scheme President Donald Trump announced last week,” said Ryan Mulholland, senior fellow for international economic policy at CAP and co-author of the analysis. “Between the across-the-board tariff, the 25 percent tariff on non-USMCA-compliant goods from Canada and Mexico, sectoral tariffs, and the astronomical 145 percent tariff on China, these tariffs will crush Americans’ wallets even harder than originally projected. Costs of typical household goods are going to rise, and American manufacturers will struggle with major increases in their operating costs; and the Trump administration’s reckless tariffs will be to blame.”
Read the analysis: “Trump’s Tariff Pause Doesn’t Pause Economic Pain and Will Cost Families $4,600 Per Year” by Ryan Mulholland and Natalie Baker
For more information or to speak with an expert, please contact Sarah Nadeau at [email protected].