Aug 1, 2025 - Business

Trump's latest tariffs will cost U.S. households $2,400 this year, analysis says

Ben Berkowitz

Reflection of pedestrians, including a woman in a blue dress holding a shopping bag, seen through a glass storefront in a busy city with tall buildings and a bus outside. — Shoppers in an NYC store window. Photo: Gabby Jones/Bloomberg via Getty Images

The new tariff rates President Trump announced late Thursday are the highest in nearly a century and will cost the average family about $2,400 this year, the Yale Budget Lab said.

Why it matters: Combined with the surprisingly weak jobs report Friday morning, it's the latest sign that American households face a much more difficult economy in the months to come.

Catch up quick: On Thursday, Trump revised the sweeping global tariffs he imposed in April, lowering rates for many countries while raising them for a few.

They will mostly take effect starting Aug. 7, though some change as soon as Friday.

By the numbers: After blending the various rates assigned to different countries, the average tariff now stands at 18.3%, the highest since 1934, the Yale group said.

Substitution, or families switching to lower-cost goods, may shave some costs, and could reduce the final burden to as little as $2,000, they added.

Between the lines: There are already signs that inflation is creeping higher as tariffs pile up, even before the latest levies go into effect.

The bottom line: It appears inevitable that most people will pay more for many things; the only question is how bad it gets.

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Trump's latest tariffs will cost U.S. households $2,400 this year, analysis says

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