Skip to content
Search AI Powered

Latest Stories

We Now Know How Much Trump's Tariffs Will Cost the Average Taxpayer and, Yeah, It's a Lot

We Now Know How Much Trump's Tariffs Will Cost the Average Taxpayer and, Yeah, It's a Lot
WASHINGTON, DC - APRIL 04: U.S. President Donald Trump (R) and Chinese Vice Premier Liu He talk to reporters in the Oval Office at the White House April 04, 2019 in Washington, DC. The New York Times reported Thursday that Trump is likely to announce plans for a future summit meeting with Chinese President Xi Jinping to resolve remaining trade issues and sign a final agreement between the U.S. and China. (Photo by Chip Somodevilla/Getty Images)

Not a win.

President Donald Trump's trade war with China, already costing American taxpayers $3 billion per month, may rack up an even bigger bill if Trump decides to levy tariffs on all $500+ billion worth of Chinese imports.

Politico reported on Tuesday that several independent studies estimate that additional tariffs would result in a tax increase for American consumers. And not we are not talking chump change here.


"The Peterson Institute for International Economics estimates the China tariffs amount to a tax hike of about $550 per American family. If Trump goes to 25 percent tariffs on over $500 billion in Chinese imports — hitting nearly every category of consumer goods from clothing and diapers to electronics — it could mean a $2,200 tax hike on the average family of three. By contrast, Trump’s tax cut gave middle-income families a tax cut of about $800, according to the Tax Policy Center."

An analysis by CNBC last week found that the "$72 billion in revenue from all the president’s tariffs" is "one of the biggest tax increases since 1993," CNBC said.  That figure amounts to the "largest increase as a percent of GDP since 1993 when compared with the first year of all the revenue measures enacted since then, according to the data."

Americans are already shouldering the entirety of the financial burden in Trump's trade spat with China, despite the president's intransigent insistence on the exact opposite.

“The costs of U.S. tariffs have fallen entirely on U.S. businesses and households, with no clear reduction in the prices charged by Chinese exporters,” analysts at Goldman Sachs wrote in a note last week. “Second, the effects of the tariffs have spilled over noticeably to the prices charged by U.S. producers competing with tariff-affected goods.”

Additionally, Deutsche Bank chief economist Michael Spencer has said that "the strong conclusion is that so far, U.S. consumers have borne substantially all of the tariff increase."

But trade wars are supposed to be "easy to win," right? That was Trump's assertion in March of 2018.

"When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win," he tweeted. "Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!"

Is this what winning feels like?

There is a new hashtag floating around, and it is pretty much perfect.

Farmers have been especially hardest hit because of retaliatory tariffs imposed by China, and Trump is now demanding another round of bailouts - courtesy of John and Jane Q. Taxpayer - to the tune of $15-$20 billion. But these patchwork subsidies will only go so far.

Thus, the Chinese have begun to shmooze alternative markets - including Russia, which has offered to pick up our slack - for numerous products such as soybeans, pork, and dairy.

Other industrial giants, including Nike, Adidas, Under Armour, Foot Locker, warned Trump on Monday that imposing additional tariffs would be "catastrophic" for American consumers.

"Any action taken to increase duties on Chinese footwear will have an immediate and long-lasting effect on American individuals and families," members of the trade group Footwear Distributors and Retailers of America said in a letter to Trump, United States Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross and Larry Kudlow, the director of the National Economic Council. "It will also threaten the very economic viability of many companies in our industry."

They estimate that slapping another 25% tax on the remaining $325 billion worth of Chinese imports would amount to a $7 billion tax hike on consumers.

"We can assure you that any increase in the cost of importing shoes has a direct impact on the American footwear consumer," the companies wrote.

They added that they cannot simply ditch manufacturing in China and go somewhere else.

"Footwear is a very capital-intensive industry, with years of planning required to make sourcing decisions, and companies cannot simply move factories to adjust to these changes," they said.

Similarly, Walmart, the world's largest retailer, will be raising prices in order to offset its ballooning import tax burden.

"Increased tariffs will lead to increased prices, we believe, for our customers," Walmart chief financial officer Brett Biggs told reporters last Thursday.

More from News/political-news

Screenshots of Kamala Harris and J.D. Vance
C-SPAN; NBC News

Kamala Harris Calls Out JD Vance For 'What He Didn't Say' During RNC Speech In Epic Takedown

In a fiery speech to supporters in North Carolina, Vice President Kamala Harris called out what J.D. Vance—former President Donald Trump's freshly selected running mate—"didn't say" in his speech accepting the VP nomination on Night 3 of the Republican National Convention.

Amid much talk about key conservative issues like immigration, the ongoing border crisis, and "law and order," he did not once mention what the GOP has explicitly laid out and is now attempting to distance itself from: Project 2025.

Keep ReadingShow less
Screenshot of Daniel Dale; Donald Trump
CNN; Chip Somodevilla/Getty Images

CNN Fact-Checker Debunks Trump's RNC Speech Lies For 2 Minutes Straight—And Yeah, It's A Lot

CNN fact-checker Daniel Dale debunked lies former President Donald Trump told during his acceptance speech at the Republican National Convention, dedicating two minutes to picking apart Trump's many falsehoods.

Trump made numerous oddball remarks during his speech, particularly his reference that the world was "at peace" when he was in office until his political opponents "turned it into a planet of war," declaring that the planet is now "blowing up around us" due to Democratic policies.

Keep ReadingShow less
Screenshots of Donald Trump and Tiffany Trump
C-SPAN

Trump Snubbed Daughter Tiffany As She Went In For A Kiss At The RNC—And People Are Team Tiffany

Social media users were sympathetic to Tiffany Trump after her father, former President Donald Trump, appeared to snub her as she went in for a kiss before his climactic speech accepting the GOP's presidential nomination.

Footage from early in the evening shows a smiling Tiffany walking up the stairs toward Trump, who clearly saw her. She then attempted to greet him with a kiss only to be ignored, as he looked out at the crowd beyond her, as she walked away looking dejected.

Keep ReadingShow less
Picture of Marjorie Taylor Greene seen on "The Daily Show" with Jon Stewart
The Daily Show

Jon Stewart Just Pointed Out The Weird Noise MTG Made During Her RNC Speech—And Now We Can't Unhear It

Jon Stewart had a lot to unpack on Tuesday's airing of The Daily Show, given a wild week that included the shocking assassination attempt on former Republican President Donald Trump as well as the Republican National Convention in Milwaukee, which kicked off on Monday.

One specific highlight from the opening night of the RNC that Jon couldn't help but fixate on was far-right Georgia Representative Marjorie Taylor Greene making strange sounds while addressing delegates during her speech.

Keep ReadingShow less
Justin Long and wife Kate Bosworth
Slaven Vlasic/Getty Images for Smile Train

Justin Long Shares Wife Kate Bosworth's 'Really Romantic' Reaction To Him Pooping The Bed

Warning: soiler alert. Graphic bowel movement descriptions ahead.

Actor Justin Long had a romantic e-poo-phany about how much he loved his wife, actor Kate Bosworth, when he soiled the bed after suffering from food poisoning during a trip to Mexico.

Keep ReadingShow less