Despite U.S. President Donald Trump lifting some previously imposed tariffs, the remaining ones are expected to cause significant financial damage for American citizens.
According to a study published Thursday by the Budget Lab at Yale University, Trump’s latest tariffs will cost a typical American family around $3,443 per year.
“Tariffmageddon isn’t over,” wrote Justin Wolfers, a professor of economics at the University of Michigan, on the platform X, commenting on the consequences of the Trump administration’s trade measures.
The study estimates that if new tariffs on China — reaching up to 145 percent — are factored in, the cost for families with higher-than-average incomes could climb even higher, up to $4,400 per year.
The analysis shows that even after adjusting for the substitution of Chinese goods with products from other countries, the average consumer is still expected to face a loss of about $2,600 annually.
Lower-income Americans are projected to be hit the hardest, suffering a disproportionately larger impact relative to their earnings.
Economists warn that the ongoing trade war will significantly slow down the U.S. economy. According to the Budget Lab, the combination of U.S. tariffs on imports and retaliatory tariffs from other countries is expected to reduce GDP growth by 1 percent and increase the unemployment rate by 0.5 percent.
This translates into approximately 685,000 fewer jobs by the end of the year, according to the same analysis.
The report also notes that Trump’s latest tariffs have pushed the average effective tariff rate in the U.S. to 25.3 percent — the highest level since 1909. Even after Trump’s announced 90-day pause, the average tariff rate will remain high at 18.1 percent, more than at any point since 1934.
