According to a new poll, Americans expect the Trump administration’s tariffs to cause higher prices, and believe their overall costs will be greater than their income increase.
89% of US adult respondents believe that tariffs will increase prices, while 70% believe that tariffs will cost more than what the tariffs bring. According to the survey It was published by Gallup on Monday.
Few Republicans predict upward price movements as a result of tariffs than Democrats, but both parties agree with the overall upward price pressure.
82% of Republicans and 92% of Democrats predict higher prices.
Republicans and Democrats are divided into revenue impacts, with 77% of Republicans looking at long-term income gains from tariffs, and 93% of Democrats predicting long-term income losses.
They are also split over whether tariffs will contribute to more manufacturing jobs in the United States. This is one of the goals President Trump has stated about his tariff goals.
85% of Republicans believe that more manufacturing jobs will be created, but 79% of Democrats think that is not the case, according to a survey conducted April 2-15/.
Most economists and many business groups have warned of the inflationary effects from Trump’s new import tax.
Many companies raise orders for foreign goods before tariffs, and economists say it takes about three months to translate into consumer prices. Trump announced a general tariff of 10% on April 2, increasing tariffs on US trading partners to 145% in the next few days.
“Consumers today are buying imported goods before the repressive burden of trade taxes,” UBS economist Paul Donovan wrote in a commentary on Monday. “On average, it takes about three months for pre-tax stock to be used.”
According to the International Monetary Fund, the overall effective US tariff rate is around 25%, the highest level in over a century. Trump also collects target tariffs on goods such as steel, aluminum, wood and automobiles.
Federal Reserve Chair Jerome Powell warns both of rising rates and expectations of higher prices due to tariffs.
The economic impact of tariffs “includes higher inflation,” Powell said in April. “The measurement of short-term inflation expectations has risen significantly, with survey participants pointing to tariffs.”
Inflation was the best issue in the 2024 election after price rises reached 40 years of highs in the aftermath of the pandemic.
The Trump campaign for the White House has repeatedly calculated the pledge to lower prices.
“We’re going to end inflation, make America affordable again, and cut the prices of all products,” Trump told a rally in Montana last August.
“Prices go down. You just look: they’ll come down, and they’ll be down quickly, not just with insurance on everything,” he told a North Carolina rally the same month.
Inflation fell in February and March after rising to the fourth quarter last year. After reaching its recent 3% peak in January, prices fell, worthy of a 2.4% annual increase in March.
