Who Will Pay the Cost of Trump's Tariffs?

President-elect Trump said he "can't guarantee" households won't pay more because of tariffs. Across the political spectrum, people are wondering how much more.

For Context: Trump has threatened to impose a 25% tariff on Mexico and Canada if they don't do more to address unauthorized immigration. On the campaign trail, he said he would impose a 20% universal tariff on all trade partners and 60% or more on China. A Tax Policy Center analysis suggested, if implemented, the plan would cost households $3,000 more per year on average. 

Tariffs Will Cost Americans More: In CNN Business (Lean Left bias) and CBS News (Lean Left bias) writers argued that Trump doesn't understand the effects tariffs would have, not only would they raise consumer prices on imported goods, but they could lead to price increases in domestically made products and undo decades of globalization. Pieces in CNBC (Center bias) and National Review (Right bias) also pointed out the high consumer cost of potential tariffs.

The Tariffs Are Already Working: Some point out that Trump is using tariffs as a negotiating tactic and may not follow through. David Zervos, chief market strategist at Jefferies, said Trump's tariff policies are likely “starting gambits” meant to “coerce” trading partners during negotiations. An Epoch Times (Lean Right bias) analysis mentions Canada has introduced increased border security, which could be a reaction to Trump's threats. General Motors CEO Mary Barra said that tariffs could have a substantial impact of her company but "described Trump’s tariff threats as part of the negotiating process to bring competitor countries to the table, and implied the president-elect’s economic strategy might be effective," according to the Washington Examiner (Lean Right bias).