US President-elect Donald Trump has made raising broad-based tariffs, especially on imported goods, the centrepiece of his campaign for the US Presidential elections.
Now that he is all set to get back to the White House, it is imperative to evaluate the impact on the market if and when his campaign promises translate into policy.
As a Republican candidate, Trump pledged before the Americans that he would slap 60% tariffs on all goods coming in from China and 10% tariffs on goods imported from all other countries, including India.
While the move could give a much-needed push to the American manufacturing market, the everyday budget of an average US citizen is likely to take a hit as most products will get costlier.
A new analysis by the Tax Policy Center also warned that the proposed tariffs could lower household incomes by an average of nearly $3,000 in 2025, significantly impacting the everyday lives of Americans.
Americans’ wardrobes will take a huge hit as clothing manufacturers will struggle with rising material and production costs. If these proposed tariffs go through, clothing prices in the US skyrocket by 10% to 25% across the board.
This would mean, Americans might have to pay $62.50 for a pair of jeans that used to cost $50, or $125 for shoes that were once $100.
