Former President Donald Trump’s 10% tariff on imported goods could cost American households about $1,500 a year, a new economic analysis has found.
Trump, the likely 2024 Republican presidential nominee, has promised to impose a 10% tariff on all foreign goods if re-elected.
According to the newspaper, import taxes are levied by sector: $90 per year on food, $120 on oil, $220 on cars, $70 on clothing, $80 on electronics, and $50 on furniture and appliances. Additional expenses will be incurred. analysis from Center for American Progress (CAP), a left-wing think tank in Washington.
“Middle-income households in the United States, or those in the 40th to 60th percentile of the income distribution, “The Consumer Expenditure Survey suggests a tax increase of about $1,500 for the typical household, about 85 percent of the average household,” the group said in its report.
The Trump campaign has described the tariffs as a key feature of an economic strategy centered on domestic manufacturing.
“President Trump’s tariff plan is the linchpin of a new strategic national manufacturing initiative that will rebalance the global trading system and dramatically strengthen America,” the Trump campaign said last year.
The CAP study found that President Trump’s tariffs would be more detrimental to U.S. consumers and importers than Chinese companies.
“Tariffs are taxes imposed on products purchased by U.S. importers as they enter the U.S. market. These importers are typically domestic companies that import products for distribution to U.S. consumers.” says the survey.
The study notes that no Chinese companies are among the top 10 importers to the United States. american transportation journal.
Other progressive policy groups have also taken issue with what they see as Republicans’ misinterpretation of how tariffs work.
“Despite what the president has said, in most cases they are paid directly by the importer (usually a domestic company) and never by the exporting country. Therefore, if the U.S. imposes tariffs on Chinese televisions, That duty would be paid to U.S. Customs and Border Protection at the border by U.S. brokers representing U.S. importers, such as Costco,” wrote Howard Gleckman of the Tax Policy Center. 2018.
Currently, tariffs are a small source of revenue for the United States; 1.7% of annual federal revenue Toward 2024
Both Mr. Trump and President Biden made domestic manufacturing a centerpiece of their economic policies during their 2024 campaigns, and both spent their White House terms pursuing more protectionist policies than previous presidential administrations.
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