New tariffs hit American wallets: Costs could rise up to $8,000
It is estimated that the annual costs an average American family will incur due to tariffs announced by US President Donald Trump will range from $4,000 to even $8,000, according to ABC News. Prices may increase on certain groceries and household items.
The network emphasized that new tariffs will impact American families and increase the cost of living for many households.
According to an analysis by the Budget Lab at Yale University, this year's tariffs will cost a household $3,800, an increase of about 2.3%.
Trump's tariffs: What will get more expensive
A price increase is expected for various household goods and food products, such as bananas. Industry representatives point out that many products like cocoa, coffee, spices, and tropical fruits are unavailable in the USA; therefore, food prices will rise. Tariffs may also impact the production process of items such as diapers and lotions.
ABC News noted that baby formula is also affected by the tariffs, even though this type of good was previously excluded from additional fees.
Tariffs will also affect the cost of toys and other products for children, such as car seats. A group of Democratic Party politicians has called for excluding children's goods like car seats and cribs from the tariffs.
New Trump tariffs: The details
Donald Trump announced on Wednesday, during Liberation Day, "retaliatory tariffs" on the entire world: 10% on all imports and 25% on foreign cars. He then showed a list of countries and tariff rates that would apply to them—in the case of the European Union, it would be 20%. General tariffs came into effect on April 5, whereas additional ones for specific countries started on April 9.
During a press conference in front of the White House, the US president argued that these would be "nice tariffs," not as high as those other countries impose on the USA. He assessed that thanks to such tariff policy, America will become rich again.
The US president noted on Monday that he is willing to negotiate, but on "tough terms" and signaled a desire to maintain tariffs. Before the New York stock market opened, he stated that he does not intend to abandon his policy, even in the face of drastic stock market declines.
