Tariffs will cost US households over $1,000 a year, Yale Budget Lab says
United States tariffs will cost the typical American household more than $1,000 per year, the non-partisan Yale Budget Lab found in an estimate released on Tuesday.
The forecast arrives amid a flurry of fresh levies imposed on Canadian products after a collapse in trade negotiations over the weekend.
A round of 50% U.S. tariffs on dozens of Canadian goods worth $20 billion took effect on Saturday, followed by a measure unveiled on Monday that will double levies on Canadian cars and auto parts in January.
The new tariffs on Canadian goods accounted for about $30 extra per household per year, the Yale Budget Lab said.
Canada on Tuesday announced levies of its own, to take effect on Sept. 8, that would match the value of goods targeted by U.S. tariffs.
Trump sharply criticized Canada for trade policies that he considers unfair toward U.S. products.
"On Trade, and in other ways, also, they are among the worst Nations in the World to deal with," Trump said on his social media platform on Monday. "They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!"
The rebuke arrived after Canadian Prime Minister Mark Carney issued blistering remarks about the U.S. approach to trade negotiations. He said talks broke down after American negotiators made requests that were unfavorable to Canada.
"They asked too much and offered too little," Carney said at a Saturday press conference.
It all comes weeks after Trump slapped sweeping new tariffs on 60 trade partners, including the European Union. Those levies ramped up an effort to reconstruct far-reaching duties struck down by the Supreme Court earlier this year.
Importers typically offset the tax burden of tariffs in the form of higher prices for shoppers. The new levies, as a result, threaten to strain household budgets at a time when the Iran war is already pushing up prices.
Inflation eased slightly in July, the most recent month on record, but price increases stayed above the pace recorded before a surge in fuel prices set off by the Middle East conflict.
Prices rose 3.4% in July compared to a year earlier, putting them more than a percentage point higher than the Federal Reserve's target rate of 2%.
The Iran war drove up gasoline prices and catapulted inflation to a three-year high in May. A preliminary peace agreement in June offered up some relief, but a burst of on-again, off-again fighting over ensuing weeks caused crude prices to climb.
The national average price of a gallon of gas registered at $4.09 on Tuesday, AAA data showed, marking a 37% rise since the outbreak of war in late February.
ABC News' Elizabeth Schulze contributed to this report.
