According to an economist interviewed by CNN, the recently announced US tariffs, revealed on “Liberation Day,” are projected to impose a $5,000 annual cost on each American household. The economist warned that this would significantly impact working and middle-class families.
Increased Cost Of Living
University of Michigan economics professor Justin Wolfers predicts that the cost of living in the U.S. will rise by 6% as businesses transfer the added expenses from tariffs to consumers. He anticipates these price increases to begin almost immediately.
Furthermore, Wolfers warns that developing nations like Papua New Guinea and Fiji will experience “damaging effects” from these tariffs, which he described as “evil.” He dismissed the notion that these countries pose any threat to the U.S. economy as “absurd.”
Isolation Risks
According to economics professor Justin Wolfers, wealthy nations are likely to respond to the U.S. tariffs with retaliatory measures, which would isolate the U.S. from the global economy. “All that President Trump has managed to do is isolate Americans from the rest of the global economy,” he stated.
Wolfers also argued that it is “nonsense” to claim that Trump’s tariffs are reciprocal, considering that most industrialized nations maintain low tariff rates. He asserted that “This plan will make the United States by far the most tariff-heavy, industrialized nation in the world.”
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Source: CNN
