From the Tax Foundation:
Trump’s ‘Liberation Day’ Tariffs: The Impact by the Numbers
On Wednesday, the Trump administration announced a series of tariffs it characterized as “reciprocal,” ranging from 10 percent to 50 percent and calculated for almost every country on Earth.
The country-specific rates were made public at the press conference announcing the tariffs, as well as on White House social media.
What will be the economic impact of these tariffs? Here are 5 key findings from our new analysis:
- Trump’s tariffs amount to an average tax increase of more than $1,900 per US household in 2025.
- The average tariff rate on all imports will rise to the highest level since 1937.
- In 2025, Trump’s tariffs will increase federal tax revenues by $258.4 billion, or 0.85 percent of GDP, making the tariffs the largest tax hike since 1982. The tariffs are larger than the tax increases enacted under Presidents George H.W. Bush, Bill Clinton, and Barack Obama.
- Trump’s tariffs will result in a nearly $2.9 trillion tax increase over the next decade.
- We estimate that Trump’s tariffs will reduce US GDP by 0.7 percent, hours worked by 605,000 full-time equivalent jobs, and after-tax incomes by an average of 1.9 percent—before accounting for foreign retaliation.
