Tariffs may seem like a simple solution to trade imbalances, but their real-world impact is far more complex and damaging. Treasury Secretary Janet Yellen has warned that sweeping, untargeted tariffs could reignite inflation, pushing up prices on everything from food to cars. Economists agree, noting that these tariffs would be paid by American consumers, not foreign governments, through higher prices.
A 10% across-the-board tariff could cost middle-class households an additional $1,700 per year, according to the Peterson Institute for International Economics. Worse, a 20% increase in tariffs would add $3,900 annually to middle-income families’ expenses, as calculated by the Center for American Progress. These price hikes would hit households already struggling with the rising cost of living, exacerbating financial pressures.
Beyond household budgets, tariffs also carry significant risks for financial markets. The trade war with China led to market volatility and a stock market drop, and future tariff increases could spark even greater financial instability. According to analysts, Trump’s proposed tariffs would likely outweigh the benefits of his earlier tax cuts in terms of overall economic impact.
The bottom line: sweeping tariffs would harm American families, fuel inflation, and destabilize markets—far from the economic protection they promise.
Sources:
https://www.cbsnews.com/news/trump-tariffs-proposal-10-percent-1700-cost-per-us-household/
https://www.cbsnews.com/news/yellen-speech-tariffs-will-increase-inflation-risk-trump/