The average American household will spend an additional $2,100 per year for goods due to the new tariffs announced by President Donald Trump on Wednesday.
According to a CNN report, citing the nonpartisan Tax Foundation, Trump’s plan will result in a substantial $900 billion drop in US imports.
This decline is expected as consumers either opt for American-made products or simply choose not to buy certain items that will become too expensive, added the report.
Nevertheless, Americans won’t be able to avoid paying more as a result of tariffs.
According to the CNN report, the average import tax in the US is set to jump to 19% this year, up from 2.5% last year — the highest rate since the Smoot-Hawley era in 1933.
Fitch Ratings predicts that this rate could rise even further, pushing America’s effective tariff rate to its highest level in over a century.
Content retrieved from: https://www.firstpost.com/world/united-states/average-american-household-to-pay-2100-more-due-to-new-tariffs-report-13877042.html.
