President-elect Trump announced plans to raise tariffs on Canada, Mexico, and China on ‘Day 1.’
At his rallies, Trump repeatedly told his supporters that tariffs are “not going to be a cost to you, it’s a cost to another country.”
But in reality, tariffs are paid to the federal government by the manufacturer, and the cost is based on the consumer.
In a study, economists found that if those plans go ahead, it would cost a typical US household in the middle of the income distribution more than $2,600 extra a year.
Several common goods will become more expensive for Americans, including gas, produce, cars, and alcohol, economists say.