Trump Tariffs Could Cost American Families $3,800 More Per Year — But President Says They're 'Bringing Tens Of Billions Of Dollars Into The US'

A report indicated that new tariff policies could lead to increased costs for American households, while President Donald Trump continues to advocate tariffs as a solution to U.S. trade deficits

What Happened: A Yale budget lab report suggests that U.S. households will face increased costs due to these tariffs. Families are projected to face an average additional cost of $3,800 this year as a result of the overall 2025 tariffs, which are expected to increase price levels by 2.3% in the short term.

Meanwhile, the April 2 ‘Liberation Day’ tariffs alone are likely to increase the average cost of $2,100 per household in 2025. The report also stated that households at the lowest end of the income distribution face annual losses of $1,700.

Both the April 2 tariffs and the combined 2025 tariffs impact the clothing and textile sector, causing apparel prices to increase by 17% under the full set of tariffs, stated the Yale report.

However, Trump took to his Truth Social and pushed for tariffs as a means to address trade deficits with nations such as China and the European Union. He argued that the tariffs already in place have generated substantial revenue—tens of billions of dollars—for the country, and criticized the Biden administration for trade surpluses favoring foreign nations. He also promised a swift reversal of this trend.

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Why It Matters: The proposed tariffs have sparked concerns about potential inflation. Federal Reserve Chair Jerome Powell hinted at this possibility in a speech earlier this month. He indicated that higher tariffs could complicate the path toward price stability, raising the risk of both slower growth and rising inflation.

Furthermore, billionaire entrepreneur Mark Cuban has warned that even American-made goods will see price hikes due to tariffs. In a Bluesky post, Cuban urged Americans to stock up on essentials before prices rise further. He suggested that even if goods are made in the U.S., retailers will increase the price and blame it on tariffs.

Global markets have been on a rollercoaster ride due to President Donald Trump’s new trade tariffs. The SPDR S&P 500 ETF Trust ( SPY ) and Invesco QQQ Trust ETF , which mirror the S&P 500 and Nasdaq-100 indexes, respectively, slipped in premarket trading Monday. SPY fell 4.01% to $485.03, while QQQ dropped 4.26% to $404.65, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.