• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

US consumers will likely bear burden of Trump tariffs

by November 30, 2024
written by November 30, 2024

Investing.com — As President-elect Donald Trump prepares to impose sweeping new tariffs, American consumers are poised to face significant economic repercussions, according to a recent research note from ING. 

Trump’s proposals include 60% tariffs on Chinese imports and 10-20% tariffs on goods from other nations, aimed at boosting domestic manufacturing and reducing reliance on foreign imports.

However, ING warns these measures will likely result in higher consumer costs.

“Given that disposable personal income in the US last year was $20.547 trillion, this tariff would represent 2.6% to 3.9% of disposable income, if fully passed on to consumers [the tariffs], i.e. $1,500 to $2,400 per capita,” wrote the bank.

They explained that this would be a substantial burden, given that consumer spending drives 70% of the U.S. economy.

Historical examples support this prediction, according to ING, noting that in 2018, a 20% tariff on imported washing machines led to a 12% rise in consumer prices within months, demonstrating how costs are often passed down the supply chain. 

“Consumers bore more than 60% of the tariff cost on foreign-made appliances,” ING noted.

Additionally, while tariffs have boosted customs revenues significantly—$257 billion under Trump-era duties since 2018—this revenue is largely offset by increased consumer prices.

ING highlights that tariffs act as a tax, reducing disposable income and limiting consumer choices.

They estimate that applying Trump’s proposed tariffs to $3.1 trillion in imported goods could raise customs revenues to as much as $790 billion, but at a steep cost to households, equivalent to 2.6-3.9% of disposable income. 

ING cautions that such policies could also fuel inflation, potentially adding one percentage point to current levels.

“Shifts in consumer behavior are one of the reasons why increasing tariffs cannot become a primary source of government revenue,” ING concluded, emphasizing the broader economic challenges such policies may pose.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
French finance minister says budget can still be improved
next post
Will the Trump administration raise tariffs on car parts and vehicles?

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Earnings call: Verizon reports record EBITDA and strong Q3 growth
    • Explainer-How likely is a Bank of Japan rate hike next week?

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy