Consumer Price Impact

The average American household is paying approximately $3,800 more per year due to tariffs across automobiles, electronics, clothing, food, appliances, and furniture. This estimate comes from the Tax Foundation and Budget Lab at Yale.

Yes. Tariffs added an estimated 1.4 percentage points to CPI inflation. Without tariffs, inflation would have fallen to around 2.0% by early 2026. Instead, it remained above 3.2% — with tariffs accounting for most of the gap.

Imported vehicles face a 25% tariff, adding roughly $6,200 to the average import price. But even domestically-made cars rose significantly because they use tariffed parts — steel, aluminum, electronics, and components that cross borders multiple times during assembly.

Research consistently shows that nearly 100% of tariff costs are passed through to consumers. The importing company pays the duty at the border, then raises its prices to cover the cost. Studies of the 2018-2019 tariffs found almost complete pass-through.

Lower-income households are disproportionately affected because they spend a larger share of their income on tariffed goods like clothing, food, and basic electronics. The tariff effectively functions as a regressive tax — the opposite of the progressive income tax.

Partially but slowly. Some price increases become 'sticky' — companies that raised prices may not fully lower them even if tariffs are removed. However, competition would eventually push prices down. The SCOTUS ruling that struck down IEEPA tariffs and mandated refunds showed that reversal is possible.