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.