Tariffs Could Cost the Average American Household Nearly $5K a Year, Study Finds

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Thats the highest importtax ratesince 1901.

In the long run, they predict the current high tariffs reducing annual GDP growth by 0.6 percentage points.

Sure enough, the economy is already flashing early warning signs.

Foreign tourism to the U.S. has also plummeted already.

Specifically, that means a drop of 770,000 in payroll employment.

Theyre not the only ones forecasting a sharp drop in employment.

George Carrillo, CEO at the Hispanic Construction Council, says their firm has run some alarming numbers.

Job losses could reach 600,000 by years end as businesses grapple with disrupted supply chains and reduced consumer spending.

Tariffs drive up prices on imported goods, exacerbating inflation.

And as much food as the U.S. produces, it also imports plenty of edible goods.

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The analysis by The Budget Lab calculates thatfood prices overall will jumpand stay 2.8% higher in the long-run.

The Budget Lab report forecasts auto prices rising 12% in the short-run and 15% in the long-run.

The latter will add an extra $7,400 to the price of an average new car from last year.

The U.S. imports most of its clothes from overseas.

The report sees the sharpest jump in clothing and other apparel costs.

Hes not alone in that fear.

Jeremy Yamaguchi serves as CEO of Cabana Pools and worries abouthow tariffs will impact all home improvementand construction projects.

He listed lumber, cement and aluminum as examples of materials the U.S. imports.

That says nothing of the potential drop in new construction starts.

Builders only start projects when theyre confident they can sell for a significant profit over their costs.

But when costs explode, it leaves many builders wary of launching new projects.

Will the current tariffs remain in place?

Trade policy from the White House has certainly shifted fast over the last three months.

Only time will tell what import taxes remain in place long-term and whether these predictions will be proven true.