Tariffs are expected to cost American households more than $2,000 per year in 2020, according to a recent report from the National Foundation for American Policy (NFAP).
The Arlington-based nonprofit — which looked at the effect of tariffs on the overall economy and consumers — estimated that by the end of 2019, the trade duties imposed by U.S. President Donald Trump “will have cost the average household $1,315 over a two-year period.”
And “when adding the tariffs in effect and the tariffs set to go into effect by the end of 2019, the costs of the tariffs to consumers will be $259.2 billion,” the report stated. “That is, the tariffs will cost the average household $2,031 per year, and will be recurring so long as the tariffs stay in effect.”
The tariffs ‘eliminate all remaining economic gains from the administration’s deregulation actions’
The $2,031 number is higher than other estimates because tariffs keep increasing.
In May, the New York Fed estimated a $831 cost to households from tariffs. J.P. Morgan estimated that tariffs that went into effect on September 1 would cost American households up to $1,000 per year. Additional tariffs on China went into effect on October 1, and more tariffs are set to kick in on December 15.
“If all tariffs threatened by the Trump administration are imposed, combined with the current tariffs in place, the annual cost to U.S. consumers would be $461.1 billion and the cost for the average household would be $3,614,” the report stated.
The increased cost — or tax — has reduced the economic benefits brought by the Trump administration’s deregulation efforts by 29%, the report noted, and added that additional tariffs would “eliminate all remaining economic gains from the administration’s deregulation actions.”
“The findings show that tariffs are a form of business regulation that can be at least as economically harmful as other forms of regulation, especially for consumers,” NFAP Executive Director Stuart Anderson said in a press release.
Aarthi is a writer for Yahoo Finance. Follow her on Twitter @aarthiswami.