Trump's tariffs: Average American household faces $2,200 price hike, report says [View all]
Source: Scripps News
Posted 8:13 AM, May 13, 2025
According to new research published by the Budget Lab at Yale University, President Donald Trump's tariffs will raise prices by almost 2% in the short run, costing the typical middle-class household more than $2,200 per year. That estimate is down from the group's mid-April estimate of around $3,400 a year.
The updated estimates come after the Trump administration announced it would lower tariffs on goods imported from China from 145% to 30% for 90 days. The estimates also reflect a new trade deal the United States reached with the United Kingdom, which will most heavily impact the import of British automobiles and parts.
The Budget Lab states that consumers face an overall average effective tariff rate of 17.8%, marking the highest level since 1934.
The report indicates that President Trump's tariffs disproportionately affect textile imports. In the near term, consumers are facing 15% higher prices for shoes and 14% higher prices for apparel, the report says. As more tariffed goods reach the U.S., those rates are expected to climb, the report adds.
Read more: https://www.scrippsnews.com/politics/economy/trumps-tariffs-average-american-household-faces-2-200-price-hike-report-says
Link to Yale Budget Lab REPORT - State of U.S. Tariffs: May 12, 2025
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