According to the nonpartisan Tax Foundation minutes ago, the average American household will pay $2,100 more per year for goods due to the tariffs. The average U.S. import tax will rise from 2.5% in 2024 to 19% in 2025—the highest level since the Smoot-Hawley era of the early 1930s. As a result, Americans’ after-tax incomes are expected to decline by 2.1% on average this year.
The tariffs span a wide range of imported goods, and economists say the impact will be immediate and widespread. Consumer prices are set to rise across essential categories like food, electronics, and household supplies.
America’s traditional allies appear to be reorienting their trade and investment strategies, viewing the tariffs as a clear sign that the United States is retreating from its leadership role in the global economic order. As new trade blocs form and foreign capital pulls back, the consequences for U.S. growth, jobs, and global influence could be profound.