Trump's Climate and Trade Policies Will Increase Costs for Consumers

Trump's climate and trade policies are projected to increase costs for U.S. households in several ways:

Higher consumer prices due to tariffs:

• Trump's proposed 10% across-the-board tariff on imports would cost a typical U.S. household about $1,700 per year in increased prices2.

• If tariffs were increased to 20% on all imports and 60% on Chinese imports, the cost to a typical household could rise to over $2,600 per year23.

Increased energy costs:

• Rolling back environmental regulations and focusing on fossil fuels over renewable energy could lead to higher energy prices in the long term4.

Higher inflation:

• Economists estimate Trump's tariff policies could increase inflation by 0.7 to 1 percentage point23.

• This would lead to higher prices across the economy for goods and services.

Reduced household income:

• The Heritage Foundation estimated that regulations required to meet Obama-era climate commitments (which Trump opposed) would result in an average total income loss of more than $20,000 for a family of four by 20351.

• However, it's important to note that this estimate is from a conservative think tank and may not account for potential economic benefits of climate action.

Potential job losses:

• Some analyses suggest Trump's trade policies could lead to job losses, which would indirectly impact household incomes2.

Long-term climate costs:

• By rolling back climate regulations, Trump's policies could lead to increased costs from climate-related disasters in the future, potentially impacting household finances4.

In summary, while Trump's policies aim to reduce regulatory costs for businesses, they are projected to increase the cost of living for U.S. households through higher consumer prices, increased inflation, and potential long-term costs associated with climate change impacts. The estimated annual cost to households ranges from $1,700 to over $2,600, depending on the specific policies implemented.