US Consumers Bear Brunt of Reinstated Trump Tariffs, Economists Warn

A federal appeals court has reinstated former President Trump’s tariffs, overturning a prior trade court ruling that blocked most of the levies. The decision revives a 30% tariff on Chinese goods, 25% duties on select Mexican and Canadian imports, and a 10% universal tariff—measures originally designed to boost domestic manufacturing and reduce budget deficits.

Economists from the Yale Budget Lab estimate the tariffs will cost American households nearly $1,000 annually. "These are fundamentally taxes paid by domestic entities," said Ernie Tedeschi, former WHITE House chief economist. "Businesses invariably pass a portion of these costs to consumers through higher prices."

The reinstated tariffs include a 25% levy on steel, aluminum, and auto parts—sectors particularly sensitive to inflationary pressures. The original ruling had criticized the tariffs as an improper use of presidential authority, noting their deployment as bargaining chips in trade negotiations.