Trump’s Proposed Tariffs: A Closer Look at the Economic Impact

Former President Donald Trump's recent proposal to impose a 20% tariff on all imported goods has sparked widespread debate over its potential economic ramifications, particularly for low-income families in the United States. According to a recent Axios report, these tariffs could significantly increase the cost of everyday items, placing a heavier financial burden on those least able to afford it.

CNN's analysis suggests that while the tariffs aim to protect domestic industries, the immediate effect might be a rise in consumer prices. This concern is echoed by The Hill, which conducted an analysis indicating that the proposed tariffs could lead to retaliatory measures from trading partners, potentially harming U.S. exporters and complicating international trade relations.

Economists cited by CNBC have questioned the White House's projections, arguing that the revenue from these tariffs might be substantially less than anticipated. They warn that the policy could lead to decreased consumer spending and slower economic growth, highlighting the complex interplay between tariffs, consumer behavior, and overall economic health.

• Donald Trump
• United States

Detailed

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Related issues news

Are tariffs bad for the economy?

Tariffs are also expected to trigger 'reduced economic activity,' said Robert McClelland, senior fellow at the Urban-Brookings Tax Policy Center. For example, U.S. companies that don't pass tariff costs on to consumers via higher prices would likely see profits suffer (and their income taxes fall), economists said.

Are tariffs good or bad for the economy?

“​​The reality is that tariffs can be, and have been, effective policy tools for promoting industrial development when they're done in a targeted strategic way and when they are matched with other complementary policies,” said Adam Hersh, a senior economist at the Economic Policy Institute.