Professor Elam

The Liberation Day tariffs announced by President Trump yesterday will result in a $1.8 trillion tax hike, according to new modeling released today by the Tax Foundation.

CLICK HERE to learn more. Key points below. 

Highest Average Rate Since 1933

• Tax Foundation estimates the average tariff rate on all imports will rise from 2.5 percent in 2024 to 18.8 percent, the highest average rate since 1933, under the tariffs announced for 2025.
• We estimate tariffs would cause imports to fall by slightly more than $900 billion in 2025, or 28 percent.

$2,100 Tax Hike in 2025

• The imposed tariffs on will reduce after tax incomes by 2.1 percent on average, with the top 1 percent of taxpayers seeing a smaller 1.8 percent reduction in after tax incomes.
• Per US household, the imposed tariffs will amount to an average tax increase of more than $2,100 in 2025.