- A new Yale Budget Lab study indicates that tariffs imposed by Donald Trump, combined with existing import taxes, will result in an 18.6 per cent effective tariff rate, the highest for US imports since 1933.
- Contrary to claims that foreign nations pay these tariffs, the study clarifies they are import taxes typically borne by American importers and passed on to consumers through higher prices.
- The tariffs are projected to cost American households approximately $2,500 annually due to increased prices, with an average price rise of 1.8 per cent in the short term.
- Specific sectors like clothing and textiles will be disproportionately affected, with shoes and apparel expected to become 39 and 37 per cent more expensive respectively, alongside significant tariffs on goods from India, Laos, Switzerland, and Iraq.
- Industries such as alcohol anticipate substantial financial losses and job cuts, while major companies like Diageo, Toyota, General Motors, and Ford projecting significant profit declines due to the tariffs.
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