New tariffs imposed by President Donald Trump are expected to increase the annual costs for an average American family by $4,000 to $8,000, according to ABC News. This will lead to higher prices on everyday groceries and household items, significantly impacting the cost of living.
An analysis by Yale University’s Budget Lab predicts that this year’s tariffs will add $3,800 to a typical household’s expenses, a 2.3% increase.
The price hikes will affect various products, including food items like bananas, cocoa, coffee, and tropical fruits, many of which are not produced in the U.S. Other items, such as diapers, lotions, and baby formula, will also see price increases due to the tariffs, even though baby formula was previously excluded from additional fees. Additionally, children’s products like toys and car seats will be impacted by the new tariffs. A group of Democratic politicians has urged for exemptions for these items.
On Wednesday, President Trump announced new “retaliatory tariffs” during Liberation Day, which include a 10% tariff on all imports and a 25% tariff on foreign cars. The European Union faces a 20% tariff. General tariffs took effect on April 5, with additional tariffs for specific countries starting on April 9.
During a White House press conference, Trump described these tariffs as “nice tariffs,” claiming they are not as high as those imposed by other countries on the U.S. He argued that the policy will make America “rich again” and said he is open to negotiations but on “tough terms.” Despite stock market declines, Trump indicated he plans to maintain his tariff strategy.
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