Trump’s New Tariffs Hit 90-Year High, Average Family to Pay $2,400 More This Year
The sweeping new tariff rates announced by President Trump on Thursday night are now the highest in nearly a century, and they’re expected to cost the average American household roughly $2,400 in 2025, according to a new analysis from the Yale Budget Lab.
Why it matters: Coupled with Friday’s weak jobs report, the tariff hike is the latest sign that economic pressure is mounting on American families heading into the fall.
Quick recap: Trump revised the global tariff system he unveiled in April. Many countries saw their rates adjusted downward — but key trading partners, including Canada, Mexico, and India, saw their tariffs rise sharply.
By the numbers: After factoring in the country-by-country adjustments, the average U.S. tariff rate now sits at 18.3%, the highest level since 1934, according to Yale researchers.
What’s happening: Even before the new tariffs kick in, prices are climbing. Economists say importers are already passing higher costs down to consumers, a pattern that’s expected to accelerate in the coming weeks.
Between the lines: Inflation had shown signs of slowing earlier this year, but these tariffs are putting that trend at risk. Some experts warn that everyday essentials — including food, clothing, and electronics — will see noticeable price hikes by early September.
The bottom line: Higher prices are now all but certain. The only question is how hard families will feel the squeeze, especially as wage growth flattens and job creation slows.
“Trump’s trade war 2.0 is already digging into household budgets,” said Nancy Liu, a senior fellow at the Yale Budget Lab. “This is the cost of tariffs — not in theory, but in dollars out of people’s wallets.”
