President-elect Donald Trump has proposed imposing tariffs on US trading partners, including Mexico, Canada, and China, when he takes office. Economists warn that this could lead to higher costs for consumers.
While some experts believe the tariffs are a negotiating tactic and may not be implemented, others think they could have a significant impact on business profits and worker wages. Tariffs would likely increase prices at stores as companies pass on the cost of imports.
The impact on US households would depend on various factors, including the countries and products targeted by the tariffs. A universal tariff policy, proposed by Trump, could raise costs for the average household by $3,000 in 2025. Low- and middle-income households might face the largest financial burden due to their limited ability to absorb price increases.
Uncertainty surrounds how the tariffs would be implemented, including whether Trump has the authority to impose them unilaterally. Some market experts see the tariff plan as a negotiating tactic, while others are less sure of its outcome. The revenue generated from tariffs could potentially help offset costs of a proposed tax-cut package on Capitol Hill.
Source: https://www.cnbc.com/2024/12/10/trump-tariffs-would-add-costs-for-consumers-economist-says.html