What would Trump's 10% tariff on all imports mean for you? Ex-president's plans ... trends now
Former President Donald Trump has signaled he would introduce new tariffs should he be elected president for a second term, but a new study by a left-leaning organization shows his tariffs would raise costs for American families.
Trump has given few details on his economic plans should he return to the White House, but he has said he would impose 10 percent tariffs on all imports.
A new analysis from the Center for American Progress Action Fund, which was founded by Democrats, found the tariff would amount to a roughly $1,500 annual tax increase for the typical U.S. household.
It would include a $90 tax increase on food, a $90 tax increase on prescription drugs and a $120 tax increase on oil and petroleum products.
The study found while the tax increases would drive up the price of goods, it would fail to significantly boost U.S. manufacturing and jobs.
'We have a candidate who is proposing a 10 percent tax across the board on all U.S. imports, and we find that has a very large effect on the typical family's cost of living,' said Brendan Duke, who co-authored the analysis.
The estimates for increases come as the United States is already dealing with increased prices due to soaring inflation coming out of the coronavirus pandemic and higher interest rates as the Federal Reserve moved aggressively to combat inflation.
A new analysis finds Donald Trump's proposed 10% tariffs on all imports would raise costs by $1,500 for households a year
Trump has proposed 10% tariffs on all imports and has said he is considering imposing 60% tariffs on Chinese goods
It estimates that Americans will import $3.2 trillion in goods next year, so a 10 percent tariff would effectively raise taxes on the goods by about $300 billion.
That would be an average of $1,700 per household in the first year. But when it looked at middle-income households which consume about 85 percent as much as the average household, according to Consumer Expenditure Surveys, it suggests a roughly $1,500 tax increase on the typical household.
For food, the tariffs would amount to a $90 tax increase the analysis found. 60 percent of fresh fruit to the U.S. is imported as are 38 percent of fresh vegetables. 70 to 85 percent of seafood is imported. And less than 1 percent of coffee is produced in the United State.
A tariff would also raise prices long term as U.S. farmers face greater costs to get supplies from abroad.
On top of increases for food, prescriptions and oil, it would include an $80 tax increase for electronics, $220 for
