Trump admits that tariffs will increase prices for American consumers: "Sometimes the country will eat it. Sometimes Walmart will be eat. And sometimes there will be something to pay. Something extra … they have to take out some of their profits." pic.twitter.com/uvRJU0iPWC
— Aaron Rupar (@atrupar) May 23, 2025
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars….
— Donald J. Trump (@realDonaldTrump) May 5, 2019
Trump: "China will now pay a big number to our treasury. This is all taxes." (This is not how tariffs work at all.) pic.twitter.com/YYT792KGb3
— Aaron Rupar (@atrupar) April 9, 2025
The Yale Budget Lab estimates the tariffs will cost the average household about $2,800 this year.
Consumers face an overall average effective tariff rate of 17.8%, the highest since 1934.
The 2025 tariffs disproportionately affect clothing and textiles, with consumers facing 15% higher shoe prices and 14% higher apparel prices in the short-run. Shoes and apparel prices stay 19% and 16% higher in the long-run respectively.
US real GDP growth is -0.7pp lower from all 2025 tariffs. In the long-run, the US economy is persistently -0.4% smaller respectively, the equivalent of $110 billion annually in 2024$.
https://budgetlab.yale.edu/research/state-us-tariffs-may-12-2025
Target CEO Brian Cornell is warning shareholders and consumers of “massive potential costs,” partly due to the tariffs imposed by President Donald Trump.
Cornell called the tariffs one element in a series of “massive potential costs,” that Target is facing, according to a NBC News report. The list includes consumer uncertainty.
The retail leader made the statements during a Wednesday’s earning call where he also stated price increases are a “last resort,” according to an ABC News report.
The news comes on the heels of Home Depot stating it will not be hiking prices due to tariffs.
Walmart, last week, said it will be raising prices due to tariffs.
In response to Walmart, President Donald Trump told the biggest U.S. retailer to eat the costs and not pass it down to shoppers.