The latest tariffs announced by President Trump will have a profound impact on everyday life. According to Dr. Justin Wolfers, professor of economics and public policy at the University of Michigan, these tariffs may be 50 times more painful than those instituted during Mr. Trump’s first term. The effects will not only be felt in wallets but also in households, with significant consequences for purchasing decisions and lifestyle choices.
Small tariffs can cause small problems, while big tariffs create huge ones. For example, Mr. Trump’s 25% tariff on vehicles is expected to raise prices by $4,000. This could lead families like the author’s to consider not buying a second car, disrupting daily routines. Similarly, across-the-board tariffs will distort virtually every purchase, forcing consumers to make do with substitutes.
Tariffs also impact businesses, leading them to channel labor and capital into less productive activities. The latest tariffs are roughly 10 times higher than those of most other industrialized countries and even exceed the infamous Smoot-Hawley tariffs of the Great Depression era. These tariffs will lead people to rethink their choices on everyday essentials, such as groceries, clothes, and cars.
The impact of these tariffs is not just financial but also affects quality of life. A 1% tariff may lead consumers to switch from real guacamole to a pea-based alternative, while a 20% tariff could make going without the real thing a hardship. The cumulative effect of these tariffs will multiply their costs, leading to a significant decrease in overall well-being.
The average tariff rate has roughly quadrupled since Mr. Trump’s election in 2016, with the current rate around 15 times its level before then. This drastic increase makes the latest round of tariffs significantly more painful than the previous ones. The author argues that voters may have chosen Mr. Trump based on memories of good economic times, but this time, the impact will be much more severe, akin to a crash rather than a gentle jolt.
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Source: https://www.nytimes.com/2025/04/04/opinion/trump-tariff-economics-cost.html