Americans face significant financial pressure due to rising prices. The proposed tariffs by the Trump administration could exacerbate this issue, making it harder for people to catch a break.
Tariffs are taxes on imported goods, and their potential impact is significant. According to the Tax Foundation, a 2025 tariff rate of 8% would be the highest in over 55 years. This could lead to increased prices, with estimates suggesting a $2,000 annual loss in disposable income for the average household.
Inflation has already been a concern, with cumulative inflation rates exceeding 23% over the past five years. The median household income is under $100,000 per year, making this financial burden even more substantial.
Prices for everyday items like computers, natural gas, and rice could rise by up to 10%, 5%, and 4%, respectively. A new car’s price could surge to over $50,000. With prices already increasing due to inflation, adding tariffs would be a significant strain on consumers.
The economic outlook is also concerning. Real wage growth has been -5% in the past four years, which is unprecedented since at least the 1960s. Americans are pessimistic about the economy’s future, with only one CNN polling instance showing a majority believing it’s good since the pandemic began.
Fewer people now expect positive economic growth, and the proposed tariffs could make this situation worse. With inflation and tariffs combining to increase prices, it’s no wonder Americans feel uncertain about their financial futures.
Source: https://edition.cnn.com/2025/03/28/business/consumer-economy-recession/index.html