How Trump’s Tariff Plans Could Cost American Families Thousands | November 17, 2024

President-elect Trump has made tariffs a big part of his economic plan. He’s talked about throwing around numbers like 100%, 200%, even 2,000% tariffs on imported goods. If you’re wondering how that impacts everyday people, here’s the deal: experts say these tariffs could cost the average American family anywhere from $1,900 to $7,600 more each year. Let’s break it down.

First, you should know that, yes, Trump has the legal power to make this happen. The Constitution lets Congress control taxes and trade with other countries, but over time, they’ve handed a lot of that power to the president. So, Trump can definitely pull this off if he wants to. A tariff is basically a tax on goods we bring in from other countries. While it can be used to bring in more money for the government, it’s also a way to punish other countries in trade wars. Historically, the U.S. has done both: we’ve put tariffs on imports, and other countries have taxed our exports in return.

Here’s the key thing: the country that exports to us doesn’t pay the tariff. Instead, the U.S. company that imports those products pays it, and they usually just raise prices for the rest of us. That means when tariffs are high, stuff costs more for everyone in America. Supporters of tariffs argue this makes it cheaper for companies to make things in the U.S., which would create jobs. But honestly, we’re in a different era now. Most businesses won’t go through the hassle of bringing manufacturing back. They’ll just deal with the tariffs and make us pay higher prices.

The National Retail Federation studied this and put together numbers on what everyday stuff would cost. They looked at items like clothes, toys, furniture, and shoes. Trump has thrown out two main ideas: one with a 10% tax on all imports and 60% on Chinese products, and another with a 20% tax on everything plus a 100% tax on stuff from China. These aren’t random; he’s actually said them.

Their chart shows how prices would rise. Things are low now, but with these tariffs, prices shoot up. A pair of jeans that costs $80 could jump to $90 or $96. Women’s sweaters at $50 could hit $56 to $60. Furniture, like a $1,500 couch, would be another $96 to $143. Athletic shoes? Those $90 sneakers could be $106 to $116. Even if you don’t care about these price hikes, a lot of people are already stretched thin, and this could hit them hard.

This isn’t about freaking people out; it’s about understanding the potential impact. Tariffs can push prices higher and even hurt the economy, but that’s a bigger topic. These numbers are estimates and depend on how far Trump wants to go. Past presidents, including Trump himself and Biden, have used tariffs but not at this scale.

And if you think these tariffs will make the government rich, think again. Tariffs have never brought in more than 2% of the government’s total money. Yes, they can be helpful, like protecting industries or dealing with unfair trade. But it’s a tough balancing act: hit foreign countries too hard, and American families feel the pain. We’re big spenders, even when things are expensive.