Trump's Tariffs Result in $2.35 Million Annual Tax Impact on US Furniture

Cost Increase Passed to Consumers Due to 10% Tariff Hike

Former U.S. President Donald Trump has announced that if he wins re-election, he will impose an additional 10% tariff on all imported goods. A recent study shows that implementing such a policy could result in a tax increase effect of up to 2.35 million won per year for middle-class American households.

According to Bloomberg News on the 17th (local time), experts recently released these findings.

[Image source=Yonhap News]

The Peterson Institute for International Economics estimated that under Trump's second-term policies, the average middle-class household's annual expenses would increase by $1,700 (approximately 2.35 million won). The left-leaning think tank Center for American Progress calculated that household spending would rise by about $1,500 (approximately 2.07 million won) annually. This includes grocery costs ($90), medication expenses ($90), and automobile-related expenditures ($220).

This is due to importers passing on the cost increases caused by tariffs to consumers, leading to higher product prices. Bloomberg reported, "Mainstream economists say that former President Trump's tariff pledge essentially amounts to a tax increase."

On the 13th, former President Trump met with Republican House members and proposed the idea of offsetting income tax cuts or eliminations by raising tariffs. Trump pledged a universal 10% tariff and a 60% tariff on China.

The Trump campaign responded to these study results by stating, "The idea that tariffs are a tax on American consumers is a lie from outsourcing companies or the Chinese Communist Party," and argued, "Former President Trump imposes tariffs while keeping inflation and consumer prices low to implement 'America first'."

Additionally, Bloomberg noted that during his presidency, Trump used tariffs not only to reduce trade deficits but also as leverage in trade negotiations with allied countries. He replaced the North American Free Trade Agreement (NAFTA) with the United States-Mexico-Canada Agreement (USMCA), wielding the threat of tariffs. He also demanded increased defense spending from NATO members and used tariffs on European steel and aluminum as a bargaining chip.

Bloomberg stated that if former President Trump succeeds in returning to the White House, European countries could once again become targets of tariff measures.