Trump may impose additional tariffs on $300 billion in Chinese goods near the end of June or early July but, before we get to that point, Americans will be asked to pay for tariffs on $200 billion in goods which Trump just increased from 10 to 25 percent.
So, how much can the average American expect to pay?
According to economists at the Federal Reserve, Princeton, and the University of California, Trump's tariffs were already costing American consumers over a billion dollars a month and the increased tariffs will add even more costs for average households.
They've increased consumer costs by $1.4 billion a month, according to experts from the Federal Reserve Bank of New York and Princeton and Columbia University. To date, tariffs have largely affected raw materials like chemicals and wooden beams used to make other products, so the cost increases appear incremental to the consumer. But additional new tariffs would boost prices on a broader number of finished goods — things consumers actually buy, like bicycles.
This latest round of tariffs will add another $500 a year in costs for the average American household, says Katheryn Russ, an economics professor at the University of California at Davis. And that could grow. President Trump has pledged to broaden tariffs even further to all Chinese imports — including big-ticket items. "Once the tariffs go onto cellphones, I mean then you're going to see people scream," she says.
Tariffs are a tax on American consumers and people who do not understand that already are going to understand that in the near future when the price of a new iPhone increases by up to $100 or more.