[Salon] Trump's bigger tariff proposals would cost the typical American household over $2, 600 a year

[Chas Freeman <cwfresidence@gmail.com>]

Trump's bigger tariff proposals would cost the typical American household over $2,600 a year

Kimberly Clausing (PIIE) and Mary E. Lovely (PIIE) Former president Donald Trump is considering a 60 percent tariff on all imports from China and across-the-board tariffs of up to 20 percent on all other goods, which would cost the typical American household more than $2,600 a year—about a 4.1 percent cut in after-tax income. KEY TAKEAWAYS This cost is up from the previous $1,700 loss in after-tax income that would have resulted from Trump's earlier plan of a 10 percent across-the-board tariff. Households in all income quintiles lose net income from Trump's tariffs, but the losses are greater for lower-income households as the tax burden shifts from richer to poorer taxpayers. The top 1 percent would experience net gains in income as their losses from tariffs would be more than offset by Trump's proposed tax cuts.