A PIIE analysis of Trump's tariff proposals and extension of tax cuts.

Trump wants to impose a 10% universal tariff on all imports and a 60% tariff on all Chinese imports.

Tariffs are regressive costs that hit lower income individuals hardest.

PIIE estimates that in a static analysis this would cost US consumers $500 billion per year, or nearly 2% of GDP. However this is a floor as it is not accounting for any retaliation. There is always retaliation in trade wars.

I'm still amazed at how little Trump's economic agenda is covered in the media. Especially when everyone talks about how inflation is top of mind.

Trump would be a disaster for the US economy and significantly increase the costs consumers face.