The governor of Kentucky, Andy Beshear, is sounding the alarm about tariffs that are currently being considered by the administration of President Trump.
He claims that these tariffs will wind up costing American households thousands of dollars.
Using a message that was shared on social media, Beshear stated that the tariffs would result in an additional annual cost of $4,700 for the typical family.
“That’s months upon months upon months of groceries. That’s months upon months of rent. That might be your entire annual deductible if you’ve got private health insurance coverage,” he stated. “No family will be able to get through that without being severely impacted and for those that are struggling to pay bills at the end of the month, it’s enough to put you under.”
An investigation that was conducted not too long ago by The Budget Lab at Yale University yielded the estimate of $4,700.
The analysts came to the conclusion that there would be “an average per household consumer loss of $4,700” if Trump’s proposal to tax practically all imports an additional 10% were to follow through with its implementation.
According to a different analysis that was presented by the Peterson Institute for International Economics, the cost to a household that belongs to the middle class would be on the order of $1,700 approximately.
According to both analyses, households with low incomes would be the most severely affected.
Customers who require expensive goods, such as a smartphone or a new car, may experience severe price shock.
Even if automakers absorb part of the impact of the tariffs, Bank of America forecasts that the new charges may hike car costs by an average of $4,500.
Such a rise would come after recent years of steep price increases that have driven the average cost of a new car to an excruciating $48,000.
Due to the high concentration of Apple’s supply chain in China, it is generally anticipated that the business will increase the pricing of its popular items, including iPhones, if the tariffs remain in place.
It is possible that the price of the iPhone 16 Pro Max will rise by 29%. The main investment office at UBS estimated that this may increase the beginning price from $1,200 to $1,550.
The cost of daily essentials like clothing and food would also increase.
A trade war, according to economists, would significantly slow down international trade and might possibly lead to a recession, which would have further negative effects on the economy.
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Last Monday, the sweeping tariffs that were about to go into force were placed on hold for ninety days. Other tariffs, including those on items made in China, are still in effect.
The administration of President Donald Trump thinks that the tariffs will result in the return of jobs to the United States.
Officials from the administration have occasionally admitted that the tariffs could result in higher pricing.
“Access to inexpensive goods is not the essence of the American dream,” Treasury Secretary Scott Bessent stated in a speech to the Economic Club of New York last month.
