Tariffs to cost average family $2,400-$3,400

[aussie_aussie_oi_oi]

How do you people feel about this?

President Donald Trump rolled out sweeping “reciprocal” tariffs Wednesday on trading partners and allies across the globe. Declaring that foreign trade practices have created a “national emergency,” the president unveiled a baseline 10% levy on all international imports, plus what he described as additional “kind” and “discounted” tariff rates that will increase but not match the rates other countries apply to American imports. The levies will hit U.S. industries from agriculture to manufacturing to fashion.

The 10% universal tariffs become effective April 5, with higher levies set for April 9, according to Trump’s executive order. Trump’s remarks Wednesday about the start dates varied from the order’s language. Trump is the first president to enact tariffs under the International Emergency Economic Powers Act — something he already did in March when slapping levies on China, Canada and Mexico over the production and smuggling of illicit fentanyl. According to a table distributed at Trump’s speech, U.S. tariffs will reach 34% on imports from China, 46% on products from Vietnam and 20% on European Union imports, among other increases. Canada and Mexico will not see additional tariffs on top of the already imposed 25% on goods (10% on energy and potash) not compliant with the United States-Mexico-Canada Agreement, or USMCA. All compliant goods can continue to enter the U.S. levy-free. The new 34% duties on China are set to stack on top of older 20% tariffs, according to some media reports, though Trump did not specify in his remarks or order. Countries that levy a 10% tax on American goods — including Brazil and the United Kingdom — will only see a 10% match. The increased levies come as 25% tariffs on foreign cars kick in at midnight.

Business owners who purchase goods from outside the U.S. will have to pay the increased duty rates to bring the products over the border, unless Trump carves out exceptions for certain industries. The president did not mention carve-outs in his remarks, but language in his subsequent executive order details exceptions for steel, aluminum, cars and auto parts already subject to tariffs under Section 232 of the Trade Expansion Act. Any products designated in the future under Section 232 will also be exempt from the new levies announced Wednesday. Other goods not subject to the “reciprocal” tariffs include copper, pharmaceuticals, semiconductors, lumber, and “energy and other certain minerals that are not available in the United States,” according to the order. Trump introduced the taxes on imports with fanfare Wednesday in the White House Rose Garden, where he said, “This is Liberation Day.” “April 2, 2025, will forever be remembered as the day American industry was reborn,” Trump said. “For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” Trump said.

Not all Republicans have signaled support for tariffs. Senate Majority Leader John Thune said at an event in his home state of South Dakota in August 2024 that Trump’s trade policy is a “recipe for increased inflation.”

The White House has circulated figures claiming the U.S. will raise up to $600 billion in revenue per year as a result of the tariffs. The figure was met with skepticism by economists because the amount of imports will likely change under higher levies. The U.S. is the largest importer of goods in the world, according to the Office of the U.S. Trade Representative. The country’s top suppliers in 2022 included China, Mexico, Canada, Japan and Germany.

Since Trump began campaigning on tariffs, economists have warned that increased costs for businesses will be passed onto consumers. Rising prices under Trump’s “reciprocal” tariff scenario are likely to cost an extra $2,400 to $3,400 per family, according to the Yale Budget Lab, with most of the financial burden falling on the lowest-income households. An analysis from the Peterson Institute on International Economics estimated the typical American household would lose over $1,200, just from the 25% tariffs already imposed on China, Canada and Mexico.
https://tennesseelookout.com/2025/04/02 ... e-nations/

[p.falk]

Are you only focusing on the economists that think tariffs will have an adverse effect?

Is there any long term good that can come from this? Or is that not what you're interested in?

[aussie_aussie_oi_oi]

I am interested in your views on the short, medium and long term effects. Especially if reciprocal tariffs are imposed.

[anawim]

Tariffs are one of those 'you're damned if you do; and damned if you don't'. It raises prices which fuels inflation, but it also creates jobs, which is good for the local economy.

[Doom]

I love the hypocrisy of the left whining that tariffs increase costs and create inflation, yet they deny that any other tax could have a similar effect.

Tariffs are not the only tax that hurts the economy.

The same people who claim tariffs are bad and that we should abolish them forever are the same ones who argue that not one penny of federal spending should be cut and that if we want to balance the budget and start making payments to the National Debt, we need a massive increase in the income tax, especially the corporate income tax.


Income taxes are 10 times more devastating to the economy than any tariff if only the people outraged over tariffs were as outraged about the income tax.


It is so hypocritical to whine about tariffs, which are intended only as a negotiating tactic to secure better trade deals while arguing for an increase in the income tax.

[Stella]

I love the hypocrisy of the left whining that tariffs increase costs and create inflation, yet they deny that any other tax could have a similar effect.

Tariffs are not the only tax that hurts the economy.

The same people who claim tariffs are bad and that we should abolish them forever are the same ones who argue that not one penny of federal spending should be cut and that if we want to balance the budget and start making payments to the National Debt, we need a massive increase in the income tax, especially the corporate income tax.


Income taxes are 10 times more devastating to the economy than any tariff if only the people outraged over tariffs were as outraged about the income tax.


It is so hypocritical to whine about tariffs, which are intended only as a negotiating tactic to secure better trade deals while arguing for an increase in the income tax.

Fairer income tax rates and closing of loopholes for billionaires would be a boon for the economy.

[anawim]

According to the CBO, the top 3% of tax payers, pay more than the bottom 70% combined. The idea that the rich don't pay their fair share is a myth perpetuated by the media. Just not true.

[BobCatholic]

The first 130 years of the US's existence, the Federal government was funded almost entirely by tariffs and no income taxes.

All of a sudden tariffs pretty much went to less than 4%.

Perhaps if we made more of the things we buy instead of buying imported stuff, imagine how many jobs that would create.

The income tax dings you by merely working for a living.
The tariffs only ding you if you spend money on imports.

[anawim]

The first 130 years of the US's existence, the Federal government was funded almost entirely by tariffs and no income taxes.

All of a sudden tariffs pretty much went to less than 4%.

Perhaps if we made more of the things we buy instead of buying imported stuff, imagine how many jobs that would create.

The income tax dings you by merely working for a living.
The tariffs only ding you if you spend money on imports.

Goods in the US cost more because US wages are generally higher. Tariffs just level the playing field. In the end you would get dinged no matter what you buy.

[Tired]

I am absolutely for reciprocal tariffs. Not sure really why people are opposed. And I absolutely do not agree that tariffs will cost an average family anywhere near that amount (in the short term). But I guess we'll see. I also absolutely believe in the long term, the cost will be negative, not positive.

Although I don't think there should be any tariffs anywhere. American companies (and consumers) are hurt by foreign countries imposing tariffs on the US (crazy how many countries impose tariffs on the US). 'Leveling' the playing field should have the effect of reducing or eliminating tariffs everwhere.

[aussie_aussie_oi_oi]

Donald Trump’s tariff regime keeps getting less and less robust. In the latest backtrack from the Trump administration following the repeated warning of the markets to chill out a bit, the US Customs and Border Protection published guidance late Friday night that introduced new exemptions for smartphones, computers, and other electronics—a major carveout for tech companies that were feeling the crunch.

The exemptions, as reported by Bloomberg, include popular devices like iPhones and MacBooks, as well as Android and Windows devices made overseas. It also includes hardware like hard drives, computer processors, memory chips, and graphics cards. Some have noted the exemption does not include video game consoles, which leaves things still pretty up in the air for the launch of the Nintendo Switch 2.

Notably, the exemptions apply universally, meaning these items coming into the US will not be subject to the 10% global tariff that currently applies to every nation, nor the 145% tariff that is currently levied against China. The exemption was also backdated to April 5, 2025, so just pretend this whole past week didn’t happen.

[anawim]

Donald Trump’s tariff regime keeps getting less and less robust. In the latest backtrack from the Trump administration following the repeated warning of the markets to chill out a bit, the US Customs and Border Protection published guidance late Friday night that introduced new exemptions for smartphones, computers, and other electronics—a major carveout for tech companies that were feeling the crunch.

The exemptions, as reported by Bloomberg, include popular devices like iPhones and MacBooks, as well as Android and Windows devices made overseas. It also includes hardware like hard drives, computer processors, memory chips, and graphics cards. Some have noted the exemption does not include video game consoles, which leaves things still pretty up in the air for the launch of the Nintendo Switch 2.

Notably, the exemptions apply universally, meaning these items coming into the US will not be subject to the 10% global tariff that currently applies to every nation, nor the 145% tariff that is currently levied against China. The exemption was also backdated to April 5, 2025, so just pretend this whole past week didn’t happen.

I've been following Trump for over 40 years. I read Art of the Deal. This was almost certainly his game plan from the get-go. Once he imposed additional tariffs, he got many countries to agree to lower theirs. He can now back track. It's called 'rile everyone up to get their attention and get them to the table' They played right into his hands.
Not how I would do things, but it's how he does things. I can almost read him like a book.

[BobCatholic]

I notice that the usual suspects* who complain that "Tariffs costs the average family...." are 100% SILENT about how much income taxes, and other federal taxes cost the American family.

That says volumes.



* I mean like the propaganda media, those who have political agendas to push, etc.

[aussie_aussie_oi_oi]

Donald Trump has insisted his administration has no intention of playing “hard ball” with his Chinese counterpart Xi Jinping – or mentioning the coronavirus pandemic – in order to make a deal in the two nations’ ongoing trade war.
I’m not going to mention Covid. I’m not going to say, ‘Oh, I’m going to play hardball with China. I’m going to play hardball with you, President Xi’,” he told reporters in the Oval Office.
“No, no, we’re going to be very nice. They’re going to be very nice, and we’ll see what happens. But ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States, and we want them involved.”
The President also somewhat backtracked on the “very high” 145 per cent additional tariffs he’d slapped on China’s exports, saying they won’t be “anywhere near” that rate.

[anawim]

The President also somewhat backtracked on the “very high” 145 per cent additional tariffs he’d slapped on China’s exports, saying they won’t be “anywhere near” that rate.

Trump never backtracks on anything. He manipulates people into getting what he really wanted in the first place. they just play into his hands. Any world leader who hasn't read "Art of the Deal", is doing themselves a disservice. There was a recent photo of Netanyahu leaving the WH with a copy of his book.
I'm not sure what Trump would do if there is ever someone who ends up out maneuvering him.

[aussie_aussie_oi_oi]

The CEOs of Walmart, Target, and Home Depot met privately with Trump on Monday and told him that although prices were steady at that moment, his trade policies could have devastating effects within just two weeks with supply chains disrupted, Axios reported. “This wasn’t about food. But he was told that shelves will be empty,” a source told the outlet.
The president was also reportedly spooked by investors’ reaction to his threats to fire Fed Chair Jerome Powell. Stocks, bonds, and the dollar all slumped this week—until Trump abruptly toned down his statements.
He told reporters on Tuesday he didn’t plan to play hardball with China, and that he was confident the two countries could strike a deal that would bring the tariffs well below their current levels.

[FormerOCD]

I question 3 aspects of this statement

1) We want longterm betterment of things and that can well mean short-term pain. Plus what is right to do is what you should do.

2) Some of the tariffs are only secondaily such, they are eg attempst to stop fentanyl deaths. THere is dollar cost and there is the cost o your very life.

3) YOu can't say you care about our tariff policy but are indifferent to the massive effect of tariffs by others. These tariffs exist right now