According to a new, President Trump’s tariff war prices may increase by 1.8 percent higher prices, possibly the cost of average American house may be around $ 2,400. Analysis From the budget lab in Yale.
Nonpartison Think Tank found that consumers faced a overall effective tariff rate of the highest 18.6 percent in almost a century. Adjustment for changes in consumer preference due to tariffs, budget lab estimated that the overall effective tariff rate would be 17.7 percent, still the highest since 1934.
The price analysis of the budget lab assumes that the cost of duties will be fully passed on consumers, and the Federal Reserve will not be taken into consideration any response to tariffs.
New tariff include 50 percent levy on India. Laos, Switzerland and Iraq are also facing 35 percent or more blanket tariff rates.
The budget lab estimated that the cost of tariffs would be felt in low-income houses compared to their high-ul-equivalent counterparts.
In low runs, tariffs will mainly affect leather products such as shoes and bags of bags, textiles and other clothing, projected the laboratory. In the long run, automobile prices can rise by about 10 percent, equal to about $ 4,500 on the price tag of a new car in 2024.
Grocery items may be affected to some extent. The budget lab estimated that food prices would increase by 3.2 percent in the short term before it is stable at 2.9 percent more in the long run.
Most of Trump’s new tariffs came into force on Thursday.
